By: Justin Winograd

In one of the most striking demographic and economic shifts in modern U.S. history, New York and New Jersey have hemorrhaged more than two-thirds of a trillion dollars in resident income over the past decade, as taxpayers and businesses flee to states with lower taxes, friendlier regulations, and more affordable costs of living.

According to a comprehensive analysis released Tuesday by the Committee to Unleash Prosperity—and reported by FOX Business—the two northeastern states lost a combined $687.6 billion in adjusted gross income between 2013 and 2022. The report, drawing on U.S. Census Bureau and Internal Revenue Service data, paints a sobering picture of economic erosion, one that underscores the long-term consequences of high taxation and unfriendly business climates in states once viewed as economic powerhouses.

“This has been one of the greatest wealth losses for one region in American history,” said Steve Moore, economist and co-founder of Unleash Prosperity, in remarks to FOX Business. “New Jersey and New York are being bled to death by low-tax states in the South.”

The Unleash Prosperity report, part of its ongoing Vote With Your Feet initiative, provides a granular account of how wealth migration has reshaped the American economic landscape. Between 2013 and 2022, New York lost a staggering $517.5 billion in resident income to other states, more than any other state in the nation. New Jersey’s losses reached $170.1 billion, ranking fourth-highest nationwide, trailing only California and Illinois.

As the FOX Business report explained, these figures represent not one-time departures but cumulative income losses—tracking the ongoing economic impact as individuals and families continue to earn and spend their money in their new states of residence. In other words, every family that leaves New York or New Jersey takes with them years of future tax revenue and purchasing power, compounding the fiscal damage over time.

In the same period, California lost $370.1 billion in resident income, while Illinois shed $315.2 billion—two other high-tax states where policymakers have long struggled to stem population and capital flight.

By contrast, states like Florida and Texas emerged as the nation’s biggest winners. Florida alone recorded an extraordinary $1 trillion gain in resident income from inbound migration between 2013 and 2022, while Texas posted an increase of $290 billion.

“These are not random movements,” Moore told FOX Business. “Americans are overwhelmingly choosing states with lower taxes, less red tape, and more economic freedom. It’s a referendum on fiscal policy in real time.”

Beyond the sheer dollar figures, the migration data reveal a stark demographic rebalancing. According to the information provided in the FOX Business report, based on IRS and Census data spanning the 2011-2012 to 2021-2022 tax years, New York lost a net 1.757 million residents to domestic migration—the highest net loss in the country. California followed closely, losing 1.632 million people. Illinois saw 881,012 residents leave, while New Jersey lost 350,111.

Meanwhile, the Sun Belt states have seen explosive population growth fueled by these outflows. Florida gained 1.591 million residents, while Texas attracted 1.268 million—more than double the third-ranking state, North Carolina, which saw a gain of 520,615 people.

The correlation between migration and tax policy could not be clearer. As FOX Business reported, the states hemorrhaging the most wealth and residents share a common profile: high income taxes, burdensome regulation, and steep housing costs, compounded by fiscal mismanagement and political hostility toward business. Conversely, the biggest winners—Florida, Texas, Tennessee, and the Carolinas—boast low or no state income taxes, robust job creation, and lower costs of living.

Economists and business leaders alike view this ongoing migration as a profound realignment of economic gravity in America. For New York and New Jersey, the exodus of high-earning residents—often business owners, retirees, and remote professionals—represents a structural loss of taxable income that cannot be easily reversed.

As the FOX Business report detailed, New York’s top earners contribute a disproportionately large share of the state’s tax revenues. Losing even a few thousand of these taxpayers can create outsized fiscal damage. For example, the top 1% of earners in New York pay nearly half of all state income taxes. When they depart for lower-tax jurisdictions, the result is a significant erosion of the state’s fiscal base.

Steve Moore told FOX Business that policymakers in Albany and Trenton have ignored these warning signs for years. “Rather than making their states more competitive, they’ve doubled down on tax increases, spending sprees, and anti-business regulation,” he said. “They’ve turned what could have been a temporary slowdown into a full-blown hemorrhage.”

The report’s findings echo what has become increasingly evident during and after the COVID-19 pandemic: high-tax states are struggling to adapt to an era of mobility and digital work, in which individuals and businesses can relocate with ease. Remote work has freed millions from proximity to major urban centers, allowing them to trade high costs for higher quality of life in more tax-friendly regions.

The governments of New York and New Jersey, however, appear unwilling—or unable—to confront the root causes of their decline. As the FOX Business report noted, rather than lowering taxes or cutting spending, both states have responded to budget shortfalls by proposing new taxes on wealth, property, and corporate earnings.

New York Governor Kathy Hochul and New Jersey Governor Phil Murphy have each attempted to reassure investors and residents that their fiscal policies are sustainable, but economists remain skeptical. “The math doesn’t lie,” Moore told FOX Business. “When you lose hundreds of billions of dollars in your tax base, you cannot simply tax the remaining population more and expect them to stay.”

The Unleash Prosperity report also warns that the political culture in these states—one marked by hostility toward business owners and entrepreneurs—has exacerbated the exodus. Rising crime in major metropolitan areas like New York City and Newark, combined with housing shortages and declining public services, have further accelerated departures.

“The tragedy,” Moore lamented to FOX Business, “is that these are some of the most dynamic, resource-rich states in the country. They have great universities, cultural institutions, and global connectivity. But their governments have made them unlivable for the very people who sustain them.”

The beneficiaries of this migration wave are overwhelmingly in the Sun Belt. As FOX Business reported, Florida’s $1 trillion gain in resident income is not just a statistical anomaly—it represents the largest wealth inflow in U.S. history.

Florida Governor Ron DeSantis has capitalized on the trend, touting his state’s lack of income tax, pro-business environment, and relatively low cost of living. Texas, likewise, has become a magnet for corporate relocations and high-income earners. Companies such as Goldman Sachs, Oracle, and Tesla have expanded or moved headquarters to Texas in the past five years, further deepening the state’s economic base.

Meanwhile, Florida has experienced a surge in investment, home construction, and tourism—all fueled by incoming residents seeking freedom from what they view as overregulated, overtaxed northern states. As the FOX Business report noted, the shift has effectively reversed the economic hierarchy that once placed states such as New York and New Jersey at the pinnacle of American prosperity.

The Unleash Prosperity findings, as detailed in the FOX Business report, should serve as a wake-up call for policymakers across the country. Wealth migration is not merely a statistical artifact—it is a referendum on governance. When states punish success and innovation through excessive taxation and regulation, their citizens vote with their feet.

Moore and his team warn that unless leaders in New York, New Jersey, and California take decisive action to restore fiscal sanity, they risk becoming “economic museums—places people visit but no longer live in.”

As America’s economic map continues to shift southward, the lessons are clear: freedom, opportunity, and growth follow pro-business, low-tax environments. States that ignore this reality do so at their peril.

As the FOX Business report noted, “The moving vans tell the story.” New York and New Jersey are watching their wealth, talent, and future roll down I-95—heading for Florida, Texas, and beyond.