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From ‘Jump on a Bus’ to Tax Crackdowns: Blue States Chase Wealthy Residents Fleeing to Red Havens

  • New York Governor Kathy Hochul expressed concern over wealthy residents leaving the state for lower-tax Republican-led states like Florida, calling those who stay 'patriotic' for supporting social programs.
  • Hochul previously told wealthy Republican residents to leave for Florida but now urges those who left to return and help fund New York's programs.
  • New York uses strict residency criteria like the 'Teddy Bear Test' and conducted about 3,000 nonresidency audits between 2010 and 2017, recovering approximately $1 billion.
  • Other blue states, including California and Illinois, are considering or enacting tax policies to retain wealthy taxpayers, while red states like Florida promote themselves as tax havens for those fleeing higher taxes.
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The New York Sun broke the news in New York, United States on Thursday, March 19, 2026.
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