People Leaving California Not to Blame for State’s Budget Deficits, IRS Data Show

Outmigration, especially among top earners, increased during the pandemic, but analysts said the loss in income tax revenue was ‘only a small contributor.’

The California state Capitol building in Sacramento, Calif., on April 18, 2022. John Fredricks/The Epoch Times

With the state facing budget deficits over the past two years, California’s nonpartisan Legislative Analyst’s Office found that a loss of taxpayers who moved to other states is contributing only slightly to the shortfall, according to a report released July 31.

Newly released Internal Revenue Service statistics show the number of taxpayers leaving California increased in 2020, while the number of people moving into the Golden State remained relatively flat. The net loss of people nearly doubled from 170,000 in 2019 to more than 300,000 in 2022.