Mass Exodus: 4 Top Reasons Why People and Businesses Are Fleeing Blue/Socialist States

Craig Huey Economics 4 Comments

Millennials, families and retired people will only take so much of high state income taxes, outrageous regulations, high cost of living and bad economic policies.

Politically liberal blue states are losing productive citizens in droves to successful, low tax, business-friendly states – states that have few regulations and lower living costs.

The exodus of residents over the past 2 years was most pronounced in New York, California and Illinois.

California has the highest marginal state income tax rate by far – 13.3% — and people are fleeing.

New York’s income tax rate of 8.82% is the 6th highest rate nationwide.

With the federal tax deduction for state income taxes and property taxes limited to $10,000 under the new Tax Cuts & Jobs Act, the mass exodus of high-income earners from these 2 states will only increase this year.

Other liberal states suffering a high rate of out-migration are Pennsylvania, the purple state of Michigan, and far-left Massachusetts.

Here are the top 5 reasons individuals and businesses are fleeing blue/liberal states for Republican red states:

  1. High state income taxes.

High income earners with high property taxes and no children qualifying for the higher child tax credit may owe more federal tax under the Tax Cuts & Jobs Act.

These taxpayers may lose more in federal tax deductions than they gain via the lower income tax rates.

  1. High cost of living.

With property values skyrocketing in large metropolitan areas – particularly in politically liberal cities on both coasts – many moderate-income millennials are priced out of the housing market.

In addition, New York and California respectively have the 3rd and 5th highest gasoline taxes in the nation – adding high commuting costs to the high cost of living.

  1. Anti-business regulatory environment.

Here are some of general characteristics of blue-state governments:

  • They are controlled by socialists and so-called progressives
  • Their economic policies are anti-capitalist and anti-free market
  • They regulate businesses heavily

These policies drive many businesses – especially small start-up businesses – out of these states because they find it next to impossible to be successful.

I have had a business in California for over 30 years. If I were starting a business today, I wouldn’t be able to make it in California.

  1. High crime and high traffic congestion.

New York City, Los Angeles and Chicago are the 3 most populous cities in the U.S.

These cities also have high crime rates and heavy traffic congestion…

People want to feel safe … and they don’t want to spend hours every week stuck in bumper-to-bumper commuter traffic…

They want to have more time to spend with family and engaging in leisure activities.

Texas – ranked the freest of the 50 states – has the highest number of immigrants from other states.

The other most common destinations for people leaving blue states are Florida, Arkansas, South Carolina and Tennessee.

It’s no surprise that folks are fleeing high tax, statist governments and moving to free, fiscally responsible states.


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Comments 4

  1. The big problem with this migration is that many of the people who are fleeing undesirables places like California and New York are the same people who voted for the politicians who created the problems that made those places undesirable. It’s the same with a lot of the country-to country migration. People leave a place that is highly undesirable because of the politics, philosophies, cultures and way of life that dominate those places to move to better places. But they bring those same politics, philosophies, cultures and ways of life with them, and proceed to ruin the country they move to. France and Belgium are two of the most notorious of the countries where this has happened. A friend of mine said that some migrants are like locusts, who destroy one field and then move on to the next.

    1. You are absolutly right Roger. We have more golf courses & college’s per capatia in San Diego & it’s probably the same north of us in Los Angles. And the elete that live West of inter state 5 are rich enough that they arn’t feeling the squeeze like the rest of us are. If you think about it when Prop. 8 on Triditional Marriage was out there not only did it pass one time but twice.
      That told me that the morjorty of people in CA. had some moral values.

  2. “Millennials… will only take so much of high state income taxes” – lol. It was mostly millennials that supported Sanders and his socialist crew of high-tax, “free everything”, hate everything Trump does, policies.
    Good article, but millennials are r-tards. They are baby boomers on a soapbox – except without the silent generation to fund all their crusades. Millennials need to get some common sense and abandon the socialism/taxation metholodogy that is causing most of the problems theyre whining about.

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