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STEPHEN MOORE: Blue-State Dysphoria: Soak The Rich Policies Have Incited A Meltdown In Dem-Run Areas

The latest Census Bureau data on U.S. population change should have sounded alarm bells for lawmakers in blue states and cities. Census data provides further evidence that “pro-wealth” tax policies caused the collapse of blue states. California, New York and Illinois all lost the most people last year. Together, these states have lost nearly 5 million people over the past decade. California and New York could both lose three more seats by the end of the decade, and Illinois could lose two more.

Did I mention these are the three states with the highest taxes? Is this just a coincidence?

Democrats in America's blue states think so, betting their farms and the Empire State Building on a “pro-wealth” strategy promoted by progressive groups to “fair” the tax system. Perhaps this will dig an even deeper hole in their financial hole. The middle class will pick up the tab. (Related: Stephen Moore: It's time for the Fed to ditch the dumbest theory in economics)

This year, at least seven blue states have implemented or pursued higher taxes on the wealth or income of the top 1% of earners, despite evidence that these policies are harmful to their citizens. ing. One such state is Washington. Once an importer of talent and brainpower because there was no income tax, the Democrats, who control all the power in Seattle, just recently enacted a 7.5% capital gains tax, and the Democratic Supreme Court has bizarrely In fact, the court ruled that it was constitutional. This is one of the highest taxes on property sales in the country.

Currently, state Sen. Noel Frame wants to impose a 1% annual tax on financial intangible assets such as cash, stocks, and bonds over $250 million. And they wonder why Jeff Bezos, one of the world's richest humans, moved to South Florida.

In Vermont, another progressive state, Democrats have just proposed further tax increases that would raise the top income tax rate above 8%. This would raise Vermont's tax rate to the fifth highest in the nation. Soon, Ben and Jerry's will be the only wealthy people left in the state – and don't be surprised if they move out.

meanwhile, maryland Democrats are pushing for a “millionaire tax” (on incomes over $750,000), a capital tax, and a new corporate tax.

California just raised its top income tax rate to . the best in the US from 13.3% to 14.4%; The Golden State just overtook New York and regained the top spot in income taxes. They must be very proud.Democrats in Sacramento also expanded the state's payroll tax by 1.1%..

Meanwhile, “red states are cutting their tax rates,” said Jonathan Williams, a fiscal analyst with ALEC, a group of more than 2,000 conservative state legislators. “He found that in 2023, nine states have enacted policies that lower individual or corporate income tax rates: Arkansas, Connecticut, Indiana, Kentucky, Montana, Nebraska, North Dakota, Utah, and West Virginia. Oklahoma. plans to cut interest rates to at least 2% this year. Several of these states now have flat-rate taxes rather than multi-tiered “progressive” tax rates. All states on this list are red states except for Connecticut.

What does this mean? Two things. First, deep thinkers in blue states are so smart that they don't realize that their “progressive” tax systems are draining their states. Otherwise they don't care. Second, red states are redefining America's future. Low taxes, school choice, worker freedom, welfare reform, and pro-drilling energy policies are attracting millions of fed-up blue-state businesses, workers, and investors. Once upon a time, the world's financial and industrial center was the Northeast. Currently, popular destinations include Miami, Nashville, Dallas, Austin, Charlotte, Tampa, and Salt Lake City. Currently, the Southeast produces more GDP than the Northeast.

I call this Blue State Dysphoria. They must change their ways or die. For now, their political leaders are choosing the latter path.

Stephen Moore is co-founder of the Committee to Unleash Prosperity and a senior fellow at the Heritage Foundation.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.