The exodus from the blue state is not just of people, but of industry as well.
According to a new report, not only do California and New York continue to lead the nation in population loss, but they also lead the lost businesses to the point that they may inadvertently create a new “Wall Street” down south.
The steady exodus of Wall Street banks and big tech companies from California and New York in recent years has cost the states nearly $1 trillion each in assets under management. The departure of companies like Elliott Management, AllianceBernstein and Charles Schwab has drained both states of thousands of high-paying jobs, further straining city and state finances by eroding tax revenue.
According to Bloomberg, from the beginning of 2020 to the end of March 2023, more than 370 investment firms, managing about $2.7 trillion in assets, moved their headquarters to a new state. The vast majority of migration was from high-tax states in the Northeast and West Coast and to lower-tax states like Florida and Texas, which have no income tax.
Florida was the top destination for firms leaving New York, with the Sunshine State attracting the likes of Icahn Capital Management and AKR Investment Management. Texas, meanwhile, has proven to be the top destination for companies moving out of California.
Florida and Texas are the two states that have seen the most population growth in recent years due to migration. Although the two states represented only 15% of the US population, they constituted it 70% of the country’s population growth from July 2021 to July 2022.
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