High-tax states are bleeding corporate dollars and resources as they flock to Republican-controlled states.
Texas and Florida led the nation in businesses relocating from across the country between 2010 and 201, according to a new report published by the Federal Reserve Bank of Dallas.
According to the report, more than 25,000 established businesses relocated to Texas during the time frame, bringing more than 281,000 jobs along with them.
This was more than enough to offset the 18,000 businesses that departed the state, resulting in the loss of approximately 179,000 jobs. Texas saw a net migration of 7,232 firms and added around 103,000 jobs, the highest total compared to any other state.
New York and California reportedly lost nearly $1 trillion in assets as financial firms fled to the South in 2023. Florida, Georgia, Michigan, and Arizona were next in line in net job gains behind Texas.
"A lower tax burden is a central part of Texas' appeal to business," the report said. California was the biggest loser of jobs and businesses between 2010 and 2019.
Forty-four thousand jobs relocated to Texas, making up 16% of all jobs moved to the state. Conversely, 14,700 Texas jobs went to California.
Additionally, Bank of America analysts note that a growing number of Americans are also migrating to Texas and Florida.
"We constructed near real-time estimates of domestic migration flows and found that pandemic migration trends are not reversing," the analysis said. Since the first quarter of 2023, the data "suggests that cities that saw a large influx of people during the pandemic have still been growing faster than other cities in recent quarters."
