Tax escape from New York and New Jersey: Nearly $690 billion in revenue lost in a decade
Tax competition in the United States is not an abstract concept, and some "blue," Democratic states, known for their high taxes, are paying the price in tangible ways. A recent analysis published by Unleash Prosperity , reported by Foxbusiness, paints a grim picture for New York and New Jersey, which have witnessed a veritable exodus of residents and, with them, a colossal portion of their tax base.
The study, based on data from the Census Bureau and the IRS (the US Internal Revenue Service) between 2013 and 2022, doesn't just count people, it tracks their income. The report highlights cumulative income loss: when a wealthy taxpayer moves, their income is lost not only for that year, but for all subsequent years they reside elsewhere.
The results of this tax migration are astonishing:
- New York: Lost a record $517.5 billion in resident income during the period.
- New Jersey: Next with a loss of $170.1 billion .
Together, the two states have seen nearly $690 billion in income and purchasing power evaporate. Steve Moore, co-founder of Unleash Prosperity, commented (as reported by Fox Business) that it is "one of the largest losses of wealth for a region in American history," calling it almost an economic "bleeding" to the Southern states.
The ranking: who loses and who wins
New York and New Jersey are in good company. Other high-tax states, such as California and Illinois, show similar trends, confirming a clear shift in wealth from "blue" states to "red" (or "purple") states with lower tax regimes.
Florida, which famously has no state personal income tax, emerges as the clear winner of this geographic redistribution of wealth.
Here is a summary of the main cumulative income streams (2013-2022):
| State | Cumulative Income Stream (2013-2022) |
| The Main Losers | |
| New York | – $517.5 billion |
| California | – $370.1 billion |
| Illinois | – $315.2 billion |
| New Jersey | – $170.1 billion |
| The Main Winners | |
| Florida | + $1,000 billion (approximately) |
| Texas | + $290 billion |
“Voting with your feet”
These impressive capital transfers are, of course, a reflection of a significant movement of people. Unleash Prosperity's project, aptly titled "Vote With Your Feet ," uses tax return data (covering the period 2011–2022) to track net migration.
- Major population losses (net):
- New York: -1.76 million residents
- California: -1.63 million residents
- Highest population gains (net):
- Florida: +1.59 million residents
- Texas: +1.27 million residents
The phenomenon is clear: taxpayers, perhaps made more mobile by the new dynamics of remote working, are actively choosing where to live based on the tax climate. While states like New York and California defend their progressive tax models to fund expanded public services, data shows that this strategy is causing a hemorrhage of the tax base that, if not stemmed, risks compromising the sustainability of their own budgets.
Questions and Answers
- Why are residents leaving New York and New Jersey? The primary factor identified by the analysis is the pursuit of lower taxes. States like New York, New Jersey, and California have some of the highest income and property taxes in the nation. Residents, especially those with moderate to high incomes, are moving to states like Florida and Texas, which do not impose state personal income taxes. This "voting with their feet" is a clear sign of a response to tax competition: people are moving to places with lower taxes, a phenomenon exacerbated by increasing job flexibility (smart working).
- What are the implications of this revenue loss for states? Such a massive loss (nearly $690 billion for New York and New Jersey over a decade) erodes the tax base. This means less tax revenue to fund key public services such as healthcare, education, infrastructure, and security. In the long term, this fiscal drain could force states to make a difficult choice: cut services or further increase taxes on remaining residents. This risks triggering a vicious cycle, accelerating further flight and worsening the state's financial situation.
- Who's gaining the most from this economic migration? Florida is the clear winner. During the same period that New York lost over $500 billion, Florida gained nearly $1 trillion in cumulative income. Texas also saw a significant net influx, earning $290 billion. These states are attracting new residents not only because of the climate, but also primarily because of low-tax policies and a regulatory environment generally perceived as more favorable to business and self-employment.
The article Tax Runaway from New York and New Jersey: Nearly $690 Billion in Income Lost in a Decade comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/fuga-fiscale-da-new-york-e-new-jersey-persi-quasi-690-miliardi-di-dollari-di-redditi-in-un-decennio/ on Wed, 12 Nov 2025 17:30:20 +0000.