The Blubber

Per CNBC

As the pandemic happened, many people started evaluating their living conditions, with some deciding to move to a different state. During Covid, New York City and California reportedly suffered as they lost over $90 billion in income as these taxpayers moved.

There were many reasons why some people decided to move during Covid, with some citing restrictions while others saying it was due to high taxes. The International Revenue Service (IRS) provided new data that showed there was a decrease in income from high-tax states and an increase in income for low-tax states.

The IRS data showed that in 2021, New York State lost adjusted gross income worth $25 billion, citing outmigration as the reason. This was on top of its previous losses in 2020, when the agency also lost $20 billion.

California reported a net loss of $18 billion in 2020, and in 2021, the state incurred a loss of $29 billion. Collectively, in just two years, both New York and California states lost a total of $92 billion.

E.J. McMahon, Empire Center founding senior fellow, gave a statement regarding the data and if migration was a problem.

McMahon: “When we get the data for 2021-22 and 2023, the outflow is certain to have slowed to some extent... which does not in my view, mean migration will have ceased to be a problem.”

Recently, it was reported that taxpayers would need a salary of $300,000 just to take home $100,000 after taxes and living expenses in New York City, San Francisco, and Honolulu. It was reported that in expensive cities, taxpayers needed a net income of over $180,000 to have a purchasing power of $100,000.

In November, it was also reported that a $100,000 salary in New York City basically felt like $36,000.

See flow at unusualwhales.com/flow.

Other News:

• You Need a $300,000 Salary to Take Home $100,000 After Taxes and Living Expenses in In NYC and SF
• In New York City, a $100,000 salary feels like $36,000

Resources:

CNBC