https://sputnikglobe.com/20230630/us-blue-states-in-the-red-as-earners-move-to-republican-heartlands-1111587571.html
US 'Blue States' in the Red as Earners Move to Republican Heartlands
US 'Blue States' in the Red as Earners Move to Republican Heartlands
Sputnik International
The US is becoming increasingly polarised, with a clear divide emerging between Democrat and Republican-run states in legislation on issues like drugs, abortion and transgender issues. But could that be driving population changes?
2023-06-30T22:27+0000
2023-06-30T22:27+0000
2023-06-30T22:25+0000
americas
republican
us
texas
california
new york state
florida
tax revenue
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Democrat-ruled US states have been forced to slash budgets as an exodus of well-paid residents slashes tax revenues.Meanwhile, the big Republican 'red states' are booming as their populations see an uptick.California, the most populous of the 50 states, has gone from a $100 billion public surplus in 2022 — when Governor Gavin Newsom began sending checks worth upwards of $1,000 to 23 million residents — to a $30 billion deficit in 2023.California and New York, another 'blue' state with almost 20 million inhabitants, saw their populations drop by almost 300,000 from June 2021 to June 2022. Meanwhile, Texas and Florida, two major Republican states, attracted almost 900,000 new residents in the same period, according to the US Census Bureau.One key factor in the shift is which taxes states levy to fund themselves. California relies on an income tax that is tapered from just 1% on the first $10,100 earnings above the $5,200 deduction to 12.3% on income over $677,000.By contrast Texas and Florida rely more on sales tax — and have seen their receipts rise by 9% in Florida's case as Americans keep spending despite soaring inflation — which has only increased income from a tax based on a percentage of ticket prices.Texas Governor Greg Abbott plans to take advantage of a $33 billion surplus to cut taxes in a bid to attract more investment to his state.Another Democrat state suffering financial difficulties is the Pacific island chain of Hawaii, where Governor Josh Green had to cut $1 billion from the budget after tax income fell by a whopping 25% in April.The state of New Jersey has also encountered money troubles, with State Treasurer Elizabeth Muoio expecting to take $1.1 billion less in taxes in 2023 than the year before. However, the Garden State is still pushing ahead with property tax relief for senior citizens, which is expected to cut revenues by $600 million over the next three years.
https://sputnikglobe.com/20230615/texas-gov-busses-migrants-to-la-says-biden-refuses-to-secure-border-1111169891.html
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James Tweedie
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James Tweedie
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population decline in california and new york state, california state budget deficit of $30 billion, are americans fleeing democrat-run states for republican strongholds?
population decline in california and new york state, california state budget deficit of $30 billion, are americans fleeing democrat-run states for republican strongholds?
US 'Blue States' in the Red as Earners Move to Republican Heartlands
The US is becoming increasingly polarized, with a clear divide emerging between Democrat and Republican-run states regarding legislation on topics including drugs, abortion and rights for transgender Americans. Could that be driving demographic changes that have seen blue states lose tax revenues?
Democrat-ruled US states have been forced to slash budgets as an exodus of well-paid residents slashes tax revenues.
Meanwhile, the big Republican 'red states' are booming as their populations see an uptick.
California, the most populous of the 50 states, has gone from a $100 billion public surplus in 2022 — when Governor Gavin Newsom began sending checks worth upwards of $1,000 to 23 million residents — to a $30 billion deficit in 2023.
California and New York, another 'blue' state with almost 20 million inhabitants, saw their populations drop by almost 300,000 from June 2021 to June 2022. Meanwhile, Texas and Florida, two major Republican states, attracted almost 900,000 new residents in the same period, according to the US Census Bureau.
One key factor in the shift is which taxes states levy to fund themselves. California relies on an income tax that is tapered from just 1% on the first $10,100 earnings above the $5,200 deduction to 12.3% on income over $677,000.
By contrast Texas and Florida rely more on sales tax — and have seen their receipts rise by 9% in Florida's case as Americans keep spending despite soaring inflation — which has only increased income from a tax based on a percentage of ticket prices.
Texas Governor Greg Abbott plans to take advantage of a $33 billion surplus to cut taxes in a bid to attract more investment to his state.
Another Democrat state suffering financial difficulties is the Pacific island chain of Hawaii, where Governor Josh Green had to cut $1 billion from the budget after tax income fell by a whopping 25% in April.
The state of New Jersey has also encountered money troubles, with State Treasurer Elizabeth Muoio expecting to take $1.1 billion less in taxes in 2023 than the year before. However, the Garden State is still pushing ahead with property tax relief for senior citizens, which is expected to cut revenues by $600 million over the next three years.
