New Analysis Details Enormous Economic Consequences as Earners Flee Blue States for Red

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PJ Media

A new analysis of IRS data shows the financial consequences of gaining or losing population can be either extremely rewarding or devastating to individual states. In 2020, blue states repelled the highest earners while red states attracted them, resulting in massive economic losses and gains.

 

Wirepoints, an Illinois-based research organization, took a look at the latest migration data released by the IRS and drew some conclusions that should leave Democrat-run states in a cold sweat, wondering how they’ll ever be able to maintain their profligacy.

In the competition for America’s best and brightest residents, the most populous blue states are becoming perennial losers. In 2020, New York, Illinois, California, Massachusetts, and New Jersey suffered net losses in their population, with high-earners taking their income — and tax base — with them:

• New York was the biggest loser, netting a loss of almost 250,000 residents, who took with them a net of $19.5 billion in income — fully 2.5% of the state’s entire adjusted gross income (AGI) in 2019.
• California did second-worst, losing a net of 263,000 residents and $17.8 billion in income.
• The third biggest loser was Illinois, whose 101,000 emigrants took income worth $8.5 billion with them
• Massachusetts came in fourth with a net loss of $2.6 billion.
• New Jersey took fifth place with $2.3 billion in lost income.