Blue States Go Bust

Heavily taxed blue states such as New York and California last year had some of the country’s most drastic drops in tax revenue. At the same time, Republican states are enjoying the highest revenue increases even as they keep income taxes low.
Under Democratic governor Gavin Newsom, California has turned a $100 billion budget surplus into a $32 billion deficit, Bloomberg reported Friday, forcing the state to trim its “lofty climate change program, delay funding, and increase internal borrowing.” In this year alone, the once-Golden State has seen its tax revenue crater by nearly 25 percent as it hemorrhages wealthy residents to lower-taxed states.
New York, which under Democratic governor Kathy Hochul has the highest tax burden in the country, saw a similar revenue drop of almost 20 percent. Both California and New York last year saw their populations shrink by about 294,000 residents, Bloomberg reported.