Leading economists now predict that roughly 800,000 Americans are preparing to abandon New York and California over crushing taxes and high housing costs; fleeing the “blue states” for the Midwest and other regions across the country.
According to CNBC, nearly one million individuals are poised to flee the liberal bastions over “high-state taxes” and suffocating housing prices.
“In years to come, millions of people, thousands of businesses and tens of billions of dollars of net income will flee high-tax blue states for low-tax red states,” said the report published in the Wall Street Journal.
“As the Trump tax cut was being debated in December, California’s Gov. Jerry Brown called the bill ‘evil in the extreme’ and fumed that it would ‘divide the hell out of us.’ He’s right—but in the end, this change could be good for all the states,” add the authors.
The report comes just months after President Trump signed the sweeping overhaul of the nation’s outdated tax system; unleashing American businesses and raising wages across the US.
BLUE STATE BLUES: Liberal Governors to SUE TRUMP ADMIN Over GOP Tax Cuts
New York’s Andrew Cuomo announced his plans Friday to form a coalition of ‘Blue State’ Governors and sue the federal government over the recently passed GOP tax legislation; saying the bill unfairly punishes east coast residents with drastically higher property taxes.
Just three states -New York, New Jersey, and Connecticut- have signed onto Cuomo’s initiative, but the group hopes to expand to California, Illinois, and other left-leaning local governments as the Republican tax cuts take effect in the coming months.
According to Fox News, the coalition blasted the legislation’s State and Local Tax Deduction, also known as SALT provision, which eliminates individual’s abilities to deduct state and local taxes from their federal filings; making people in high-tax states likely to pay more on their annual tax bill.
“The elimination of full state and local deductibility is a blatantly partisan and unlawful attack on New York that uses our hardworking families and tax dollars as a piggy bank to pay for tax cuts for corporations and other states,” Cuomo said in a statement. “This coalition will take the federal government to court to protect our residents from this assault.”
“Capping the State and Local Tax deduction had nothing to do with sound policy,” added New Jersey Governor Phil Murphy. “It is a clear and politically motivated punishment of blue states — like New Jersey and our neighbors —who already pay far more to the federal government than we receive.”
Cuomo’s lawsuit is the latest instance of Democratic leaders struggling to stop the President’s tax overhaul. Earlier this month, California announced its intention to “seize” half the tax cut revenue of all corporations earning over $1 million.
BLUE STATE BLUES: New Jersey Governor to RAISE TAXES on ‘EVERYTHING’
The Democratic Governor of New Jersey Phil Murphy unveiled his vision for the state’s proposed budget Wednesday; raising taxes on “everything” in a bid to save the Garden State from ballooning debt and massive budget deficits.
Murphy -the liberal politician who replaced outgoing governor and presidential nominee Chris Christie- plans to fund the state’s record-setting $37.4 billion budget by increasing taxes on nearly everything, including: gambling, ride-sharing services, marijuana, tobacco, online sales, retail sales, and more.
The budget also increases spending for education, transportation services, and state-wide pension funds.
“If we enact another budget like the one our administration inherited, our middle class will continue to be the ones shouldering the burden, while seeing little in return,” Murphy said Tuesday. “A millionaire’s tax is the right thing to do… and now is the time to do it.”
“The proposal, 4.2 percent higher than the current fiscal year’s, relies on a tax for the wealthiest that has yet to be approved and lacks support from key Democrats in the legislature,” writes Bloomberg. “It also reverses pledges from Murphy’s predecessor, Republican Chris Christie, to lower taxes in a state where living costs are among the nation’s highest.”