Billions in taxpayer income are leaving California and New York as new economic trends emerge

U.S. IRS data shows significant taxpayer losses from high-tax states like California and New York, particularly in major counties such as Los Angeles and Queens, with many residents relocating to lower-tax states like Texas, Florida, Arizona, and Nevada. Despite Manhattan gaining new tax filers, it experienced a decline in income as wealthier residents left. Experts attribute this migration pattern to taxpayers seeking lower taxes and costs of living, which could impact state revenue and public services over time.

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