California Faces Economic and Political Challenges as Wealthy Residents Leave

The state's population decline, largely driven by the exodus of high-income taxpayers, contributes to a severe revenue decline and potential loss of political influence.

• California's population has declined for the third consecutive year, with a loss of about 75,400 people over 12 months, according to the U.S. Census Bureau.
• Among those leaving are some of the state's wealthiest residents, contributing to a 25% drop in total income tax collections in 2022-2023.
• California had a net loss of about 158,200 tax returns in 2020-2021, with over 27,300 fewer tax returns reporting an adjusted gross income of at least $200,000.
• The state's $68 billion budget deficit is largely linked to a severe revenue decline, with the Legislative Analyst’s Office suggesting drawing from its $24 billion in reserves among possible solutions.
• The population decline could impact the state's political influence, with projections suggesting California could lose seats in the House of Representatives in 2030.

3 Articles

Fox Business Los Angeles Times Breitbart