Tax Revenue Losses in New York and New Jersey

Ed Ra, a lawmaker from New York and the ranking member of the Assembly Ways and Means Committee, is contemplating the future of Mayor-elect Zoran Mamdani’s tax initiative.

A recent analysis indicates that New York and New Jersey have faced significant losses in tax revenue, amounting to billions, due to population declines in recent years.

According to a report released by Unleash Prosperity, New York has lost an astounding $517.5 billion in resident income, while New Jersey has seen a decline of $170.1 billion from 2013 to 2022, based on data from the Census Bureau and the IRS.

The report assesses the total fluctuations in income as people have relocated, capturing not just the initial move but also the ongoing shifts in subsequent years. The original findings were published in the New York Post.

Economic Factors Impact U.S. Voters

Unleash Prosperity discussed that New York and New Jersey lost nearly $690 billion in total resident income over the past decade. Steve Moore, an economist and co-founder of the organization, remarked that these states have effectively seen a two-thirds erosion of their net income and purchasing power, largely due to individuals relocating to lower-tax regions.

Moore characterized this as one of the most substantial wealth losses in the nation’s history, criticizing the pressures faced by New Jersey and New York from states with more favorable tax rates.

Mamdani’s Vision for Change

During the same time frame, New York recorded the largest income loss of any state, while New Jersey ranked fourth in losses. Other states such as California and Illinois also experienced significant declines, losing $370.1 billion and $315.2 billion, respectively.

Conversely, Florida reported a substantial income increase exceeding $1 trillion, and Texas followed with a gain of $290 billion from 2013 to 2022.

The Shift in Population Trends

The findings from Unleash Prosperity’s Vote With Your Feet initiative illustrate the migration trends of Americans, tracking where both people and their incomes are headed. From tax return data analyzed between 2011-2012 and 2021-22, New York lost approximately 1.757 million residents to internal migration. California followed with a loss of 1.632 million, while Illinois and New Jersey saw declines of 881,012 and 351,111 residents, respectively.

On the other hand, the states that gained population during this period include Florida, which welcomed 1.591 million new residents, and Texas, attracting 1.268 million people. This dwarfs the growth seen in North Carolina, which ranked third with an increase of 520,615 residents.