Fox Business panel discussion on blue-state tax policy and the claimed exodus of wealthy residents. The speakers argue that higher taxes in states like Washington, California, New York, and cities like Seattle, San Francisco, and New York City are pushing high earners and property owners to consider leaving, while Democrats and local officials downplay the scale of the migration.
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This short Fox Business segment centers on the political and market-like consequences of blue-state taxation: Washington’s new 9.9% millionaire tax, New York City’s proposed apartment-related tax, and a series of defeated local tax measures in California. The panel’s core thesis is that aggressive taxation and regulatory hostility are encouraging wealthy residents and business leaders to relocate, and that this has both fiscal and political consequences for the states and cities that impose those taxes. The discussion begins with Taylor framing Washington State’s 9.9% tax on millionaires, noting that it does not begin until 2028 but that “the state is paying the price” already because a survey found half of Washington business leaders are considering moving their personal residence out of state. …
Tactically, the near-term setup is headline-driven: any new survey, migration anecdote, or ballot result can extend the anti-tax, exodus narrative. The immediate risk is that officials downplay the issue while voters and residents react to implementation details, especially in New York City and Washington.
Over the next several weeks to months, the base case is continued resistance to new high-end taxes, with California’s November vote and NYC implementation details serving as validation points. If the measures pass but revenue holds and departures stay limited, the bearish exodus thesis weakens; if high earners keep leaving or complaining, it gains credibility.
Structurally, the segment argues that high-tax states face an enduring competitiveness problem because capital and residents can relocate across state lines. The long-run implication is a persistent fiscal and political constraint on blue-state tax design, especially if migration continues to erode the tax base.
High-tax blue states lost $2 trillion in revenues to red states from 2012-2023.
Cites a study by the Committee to Unleash Prosperity covering 2012-2023.
New York City's tax on apartments over $5 million will cause owners to sell because they don't want to be part of it.
Speaker reports anecdotal evidence from personal acquaintances about intent to sell, and criticizes the city's lack of implementation parameters.
The state of California's requirement for voter approval of local tax increases caused San Diego's Measure A (second homes tax) to be defeated.
Speaker links the constitutional requirement to the defeat of the specific ballot measure, citing a San Diego Union-Tribune story about voter distrust.
Do you still think the narrative that rich people are leaving Washington is overstated?
The response says claims of a large exodus caused by Washington's millionaire tax are overblown, though it frames the issue as part of a broader trend of high-tax blue states losing residents and revenue.
What do you think about the millionaire tax in Washington and broader tax-driven migration from blue states?
She argues that blue states and blue cities keep raising taxes and are therefore losing residents. She cites a study from the Committee to Unleash Prosperity claiming high-tax blue states lost $2 trillion in revenues to red states from 2012 to 2023.
What do you make of people like Bezos, the Zillow co-founder, and Howard Schultz leaving?
He says people can leave and that is fine, but they were community leaders who helped set the stage for the politics they now object to. He warns that states like Texas or Idaho should watch out because newcomers may carry the same political habits with them.
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