A blue state gave Ron DeSantis one gift that is bad news for Democrats

Jun 3, 2024

Florida has become the hottest destination in the country under Ron DeSantis.

Democrats continue to make his job easier attracting new residents. 

And a blue state gave Ron DeSantis one gift that is bad news for Democrats.

Massachusetts could send money and residents fleeing to Florida

Florida has been the beneficiary of residents looking to escape the failed policies of blue states.

New York is the biggest contributor of new residents to the Sunshine State, but it could soon be getting a challenge from another state in the northeast.

A study from Boston University’s Questrom School of Business found that Massachusetts could lose residents and their tax revenue to other states because of high taxes and housing costs.

Migration out of Massachusetts has surged by 1,110% since 2013 to more than 39,000 people.

The state lost more than $4.2 billion in adjusted gross income (AGI) to residents leaving in 2021.

Florida and New Hampshire were the top destinations for residents leaving the state.

Both of those states notably have no state income tax while Massachusetts has one of the highest in the nation.

“Move-to states ranked significantly better in three drivers; lower income taxes, cost of housing and cost of healthcare,” the Boston University study said.

Massachusetts saw $1.77 billion in AGI leave the state for Florida, the top destination.

“By 2030, net outmigration could cost MA $19.2 billion in adjusted gross income and $961 million in lost income taxes per year,” Questrom graduate students Yuhan Liu and Linglan Xu found.

New millionaires’ tax could send more Massachusetts residents fleeing the state

Massachusetts’ problems could be compounded by a new 4% surcharge on incomes of more than one million dollars on top of the state’s income tax.

Boston University lecturer Mark Williams, the primary researcher behind the study, questioned if the new millionaires’ tax would be a benefit for the state. 

“Short run, we may be getting more tax revenue,” Williams said. “The question about that is, ‘Has that increased outmigration?’ If that data says it has, then the state needs to weigh that cost.”

In a knowledge-based economy like in Massachusetts, workers are more mobile than ever with remote work.

Losing population points to problems in the future for the state according to Williams.

“If our workforce and population is not growing, then we can’t expect to have future economic growth,” Williams said.

Census data shows that Americans are leaving high-tax states in the Northeast and the West Coast for low-tax states in the Sun Belt.

 “Migration patterns are driven by citizens voting with their feet, a report card on how well a state is doing to meet their needs,” the Boston University report stated. “Each year, millions of Americans move from one state to another. Movement can happen for numerous economic and non-economic reasons. Growing costs in a state can make it unattractive to individuals, families, and businesses.”

A Tax Foundation study found that New York, California, Hawaii, Alaska, and Illinois lost the most residents per capita while South Carolina, Delaware, North Carolina, Tennessee, and Florida saw the biggest gains from migration.

“This population shift paints a clear picture: Americans are leaving high-tax, high-cost-of-living states in favor of lower-tax, lower-cost alternatives,” the Tax Foundation stated.

Florida is a major beneficiary of the failed tax and spend policies championed by blue states.

DeSantis Daily will keep you up-to-date on any developments to this ongoing story. 

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