by WorldTribune Staff, May 10, 2026 Non-AI Real World News
Democrat-led states are doubling down on “tax the rich.” The policy priority is driving out residents by the hundreds of thousands. Blue states are responding to the mass exodus by attempting to re-arrange congressional maps to insure more tax-the-rich Democrats get into Congress. It isn’t working out well for the party, analysts say.
“Let the Exodus begin,” Fox Business host Stuart Varney said in a recent broadcast. “Oh, actually, it started already.”
Varney said the trend of people, jobs, and wealth moving away from states with high taxes and heavier regulations will continue.
“We’re talking about mass migration within the United States from one group of states to another,” Varney said. “This is America, and we move. But you ain’t seen nothing yet.”
Varney cited projections from economists Art Laffer and Stephen Moore who said that California and New York alone could lose 800,000 residents every year for the next three years.
“Consider this, in each of the next three years, 800,000 people will leave California and New York,” Varney said. “That’s 800,000 a year.”
In a March analysis for the New York Post, Betsy McCaughey noted: “It’s not just New York and California: All across the nation, blue states are committing political and economic suicide by targeting millionaires with high taxes.”
“Leftist Democratic pols demanding new state tax-the-rich measures are ignoring economic reality: Wealthy residents can and do move in response to unreasonable taxes — taking jobs, revenue and even congressional representation with them,” McCaughey wrote.
Varney noted that additional states are expected to experience similar population losses.
“Another 500,000 will leave Connecticut, New Jersey and Minnesota,” Varney said.
“These numbers are from economists Art Laffer and Stephen Moore,” Varney said. “Quote, millions of people, 1000s of businesses and 10s of billions of net income will flee high tax, blue states for low tax red states.”
Varney argued the migration pattern represents a major economic shift benefiting Republican-led states.
“That’s the important point,” Varney said. “People and money and jobs moving out of Democrat states and moving to Republican states, taxes are what’s doing this.”
Varney said the economic consequences could be severe for states losing residents and businesses, while lower-tax states stand to gain population growth, stronger housing markets, and higher revenues.
“This is terrible news for blue states,” Varney said. “It is a bonanza for low tax Texas, Florida, Nevada, Arizona, Tennessee, Utah and others.”
In March, the Washington state legislature passed a “millionaires’ tax” (Senate Bill 6346) which was signed into law by Democrat Gov. Bob Ferguson. The law imposes a 9.9% tax on personal income over $1 million annually.
Add that to already high sales, capital gains, property, and excise taxes.
“This millionaires’ tax will add to that burden and drive out business,” McCaughey wrote.
The exodus has already begun. Starbucks, a Seattle icon, is moving much of its corporate management to income tax-free Tennessee.
In Taxachusetts, fiscal reformers proposed a ballot initiative to lower the state’s income tax on non-millionaires from 5% to 4%.
Lefty Democrat Gov. Maura Healey, not surprisingly, opposes the measure, saying: “Cutting income taxes doesn’t make Massachusetts more affordable.”
McCaughey noted: “Really? It would save the average state taxpayer about $1,300 annually.”
With an influx of new residents and businesses, tax-friendly red states may be able to cut taxes even further.
Varney contrasted those projections with what he described as worsening conditions in high-tax states, adding, “But for the high tax states, it is a disaster.”
Meanwhile, Tennessee is the latest Republican-led state to pass a new redistricting map. The state legislature on Thursday passed a map that splits Memphis along new congressional lines and eliminates the Democrats’ advantage in the 9th district. Republicans are expected to win all of the Volunteer State’s seats in this year’s midterms.
The bad news for Democrats kept coming. On Friday, the Virginia Supreme Court ruled that the Democrat Party’s redistricting referendum, which was passed by voters, violates the state’s constitution.
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