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An image collage containing 2 images, Image 1 shows Cars arriving at Beverly Hills City Hall to vote on Election Day, Image 2 shows Voting machine with an American flag and <\/p>\n
For many decades, California wasn\u2019t just the No. 1 destination for families and businesses in the United States.<\/p>\n
It was also the state of choice for smart people \u2014 America\u2019s entrepreneurs and brainiacs<\/a>. <\/p>\n That\u2019s because the future started in California.<\/p>\n But in the last decade, the Golden State<\/a> has somehow lost a net 1.6 million residents to predominantly red states.<\/p>\n For many decades, California wasn\u2019t just the No. 1 destination for families and businesses in the United States. Ruaridh Connellan for NY Post<\/p>\n Florida has been the biggest winner from this migration, with tens of billions of dollars in income flowing from the West Coast\u00a0into Florida. <\/p>\n No other state except New York has lost more residents.<\/p>\n California and New York also have the nation\u2019s highest top tax rate<\/a> of more than 13%, vs. zero in Florida. <\/p>\n Every year for the past 15 years, I have helped prepared the ALEC Rich State Poor State Competitiveness Index. This measures which states have the best and worst economic climate for business and overall affordability.<\/p>\n California and New York also have the nation\u2019s highest top tax rate of more than 13%, vs. zero in Florida. AFP via Getty Images<\/p>\n The good news is California isn\u2019t last. <\/p>\n It ranks 47th, only behind New York, New Jersey and Vermont and just ahead of Illinois.<\/p>\n But one thing is for sure. If California were to adopt a 5% wealth tax, California would overnight become the least competitive state in the union. <\/p>\n This is the blue state disease.<\/p>\n It\u2019s the economic equivalent of COVID in its devastation.<\/p>\n \u201cProgressive\u201d states\u00a0like California with high tax rates and heavy regulation have lost nearly $2 trillion of cumulative income from their states to those ranked with high competitiveness \u2014 states mostly located in the South.<\/p>\n That list includes Texas, Utah, Tennessee and Florida. <\/p>\n Rich State Poor State Economic Competitiveness Rankings<\/p>\n Rank<\/p>\n State<\/p>\n 1<\/p>\n UT<\/p>\n 2<\/p>\n TN<\/p>\n 3<\/p>\n ID<\/p>\n 4<\/p>\n NC<\/p>\n 5<\/p>\n AZ<\/p>\n 6<\/p>\n AR<\/p>\n 7<\/p>\n IN<\/p>\n 8<\/p>\n OK<\/p>\n 9<\/p>\n SD<\/p>\n 10<\/p>\n FL<\/p>\n 11<\/p>\n WY<\/p>\n 12<\/p>\n NV<\/p>\n 13<\/p>\n TX<\/p>\n 14<\/p>\n GA<\/p>\n 15<\/p>\n OH<\/p>\n 16<\/p>\n ND<\/p>\n 17<\/p>\n WV<\/p>\n 18<\/p>\n LA<\/p>\n 19<\/p>\n MO<\/p>\n 20<\/p>\n AK<\/p>\n 21<\/p>\n SC<\/p>\n 22<\/p>\n NH<\/p>\n 23<\/p>\n KY<\/p>\n 24<\/p>\n MS<\/p>\n 25<\/p>\n IA<\/p>\n 26<\/p>\n AL<\/p>\n 27<\/p>\n NE<\/p>\n 28<\/p>\n WI<\/p>\n 29<\/p>\n CO<\/p>\n 30<\/p>\n KS<\/p>\n 31<\/p>\n VA<\/p>\n 32<\/p>\n MI<\/p>\n 33<\/p>\n MA<\/p>\n 34<\/p>\n PA<\/p>\n 35<\/p>\n NM<\/p>\n 36<\/p>\n DE<\/p>\n 37<\/p>\n MT<\/p>\n 38<\/p>\n WA<\/p>\n 39<\/p>\n MN<\/p>\n 40<\/p>\n OR<\/p>\n 41<\/p>\n RI<\/p>\n 42<\/p>\n MD<\/p>\n 43<\/p>\n HI<\/p>\n 44<\/p>\n ME<\/p>\n 45<\/p>\n IL<\/p>\n 46<\/p>\n CT<\/p>\n 47<\/p>\n CA<\/p>\n 48<\/p>\n VT<\/p>\n 49<\/p>\n NJ<\/p>\n 50<\/p>\n NY<\/p>\n The \u201cprogressive\u201d states like New York, California and New Jersey must change, or they will continue to be bled dry by more family- and business-friendly states, where costs are lower and jobs are more plentiful. <\/p>\n In a recent conversation with Florida Gov. Ron DeSantis, he told me: \u201cWe used to see the license plates from New York and Connecticut. Now we are seeing more and more from California.\u201d<\/p>\n States like Florida and Texas are plundering the high-tax states and this is decimating the tax base of states like California.<\/p>\n Download The California Post App, follow us on social, and subscribe to our newsletters <\/p>\n California Post News: Facebook<\/a>, Instagram<\/a>, TikTok<\/a>, X<\/a>, YouTube<\/a>, WhatsApp<\/a>, LinkedIn<\/a> The rich are highly sensitive to tax rates.<\/p>\n Good public policy attracts people, businesses, and money. Bad policy repels them.<\/p>\n High taxes and costly regulations are like spraying employees in the eyes and mouth with pepper spray.\u00a0 Do it once and it will be a long time before they will come back \u2014 if ever. <\/p>\n Good public policy attracts people, businesses, and money. Bad policy repels them. Ruaridh Connellan for NY Post<\/p>\n It\u2019s not just financial power that states like California are losing. They\u2019re surrendering their political power as well.<\/p>\n Based on current trends, California, Illinois, New Jersey and New York could lose eight, nine or even 10 congressional seats in the next Census redistricting after 2030. <\/p>\n What\u2019s sad about this demise is that America needs a strong and dynamic California to remain the world\u2019s economic and tech superpower.<\/p>\n Silicon Valley must lead the way of AI just as we dominated the Internet age. <\/p>\n That\u2019s why the \u201csoak the rich\u201d tax that Golden State voters will probably decide on in November won\u2019t just hurt their own state, but the nation\u2019s economy as well. <\/p>\n Stephen Moore\u00a0is a senior fellow with America First Policy Institute and a co-founder of Unleash Prosperity. \u00a0<\/p>\n![\"For](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/04\/151cb97c36ce17ae0be799958eacf7c5.jpeg\"\/)
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