Nearly a decade ago, Elon Musk, the darling of alternative energy politicians, got a grant from California to build a battery factory and then wisely used the money in another state. People under 35 with good incomes are going to take their tax-free windfall on student loans and do the same, if recent demographic trends hold.
California lost a Congressional seat due to the diaspora and most of it went to Texas. On the east coast, the New York City exodus is helping Florida. While some argue it is because those states are not overwhelmingly dominated by one political party, which means smarter decision-making, the more likely reason is they have no state income tax. For state and local tax combined the average is 12.7% in New York and 11% in California. Add in sales taxes and that is a lot of money.
Those are averages, if you expect to get wealthy it is even more bleak. California has high income tax, up to over 13%, while New York is up to 12%. And then they add in sales taxes. In my California county, sales tax is 7.75% (more in my city) while others may pay nearly 11%. New York has 4% sales tax.
Texas and Florida have only a 6% sales tax and then property taxes, like everyone, but lack of a state income tax is a substantial benefit.
If you are going to make the same amount of money regardless of where you live, and that is the case until companies stop believing it is patriotic to have employees posting Instagram photos of them walking their dogs on Zoom meetings, it is smart to live where that money has more value. That is places except New York, California, and Washington, DC, where all the wealthiest elites in America are - and the highest taxes. So if you are not one of the wealthy elites it is wise to leave, you can still vote the same way as they do in more affordable states.
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