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California, New York, Illinois the biggest losers amid exodus to low-tax states: IRS

Written by Bill Pan via The Epoch Times (emphasis ours),

The latest tax migration data from the Internal Revenue Service (IRS) shows that the exodus of taxpayers from high-tax states continued in 2020 and 2021, with California, New York and Illinois once again experiencing some of the greater losses of people and money to the country. .

An aerial image shows the city skyline in San Francisco, California on January 20, 2023. (Patrick T. Fallon/AFP via Getty Images)

California’s tax base shrank by nearly $29.1 billion as the Golden State saw a net loss of 332,000 taxpayers and their dependents during an era of widespread lockdowns. stay-at-home orders and business closings, according to IRS migration data released Thursday.

In second place was New York, which was affected by a net loss of $24.5 billion and 262,000 people. Illinois was third, with a net loss of $10.9 billion and 105,000 people. Other high-tax states like Massachusetts ($2.6 billion) and New Jersey ($2.3 billion) also saw tens of thousands of people move during the period.

On the winning side, Florida reaped the benefits of wealth migration more than any other state, enjoying a net gain of $39.1 billion in gross income from 256,000 new residents. Texas, which earned $10.9 billion and 175,000 people, came in second. They were followed by Nevada ($4.6 billion), North Carolina ($4.5 billion), Arizona ($4.4 billion), South Carolina ($4.2 billion) and Tennessee ($4.1 billion).

The data was collected by comparing postal addresses from one year’s income tax return to the following year’s. The most recent migration data reflects address changes that occurred between when taxpayers filed their tax year 2019 returns in calendar year 2020 and when they filed their tax year 2020 returns in calendar year 2021.

Even before the COVID-19 pandemic, California had already seen a net outflow of people and money to other states. According to previous IRS data, California lost $8 billion in revenue in 2018 and $8.8 billion in 2019.

California still has more tax revenue than any other state because of its tax structure, which places higher rates on wealthy residents. Governor Gavin Newsom announced last May that his state had a historic budget surplus of $97.5 billion.

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