Tax revenue in Democratic strongholds is plummeting.

Republican states are experiencing a surge in revenue

Heavily taxed blue states such as New York and California last year witnessed significant drops in tax revenue. Meanwhile, Republican states are enjoying substantial increases in revenue despite keeping income taxes low.

Under Democratic governor Gavin Newsom, California has transformed a $100 billion budget surplus into a $32 billion deficit, as reported by Bloomberg. This has led the state to make adjustments such as reducing its ambitious climate change program, delaying funding, and increasing internal borrowing. In just this year, the once-Golden State has experienced a staggering 25 percent decline in tax revenue due to the exodus of wealthy residents to states with lower taxes.

New York, which holds the highest tax burden in the country under Democratic governor Kathy Hochul, also faced a similar drop in revenue of nearly 20 percent. Both California and New York witnessed a population decrease of approximately 294,000 residents, according to Bloomberg.

However, it’s not just California and New York facing tax problems. States like Illinois, New Jersey, and Hawaii also reported revenue drops, although not as severe as the aforementioned states, as stated by Bloomberg.

Interestingly, while California and New York struggle with shrinking tax bases, Republican states like Florida and Texas are experiencing remarkable revenue growth. Florida witnessed a 9 percent increase in tax revenue last year, while Texas saw an astounding 12 percent surge. Both states welcomed around 888,000 new residents, as reported by Bloomberg.

Florida, under the leadership of Governor Ron DeSantis, and Texas, under Governor Greg Abbott, currently boast record-breaking budget surpluses of $21.8 billion and $33 billion, respectively.

“We make tough choices, and we ensure we plan for the long term,” stated DeSantis in May, emphasizing their prudent financial decisions.