The Numbers Don't Lie - 'Shock' Report Says Dem-Run States Flounder Economically While Red States Thrive

In the last several years, we have watched as beleaguered taxpayers flee the blue states of the East and West coasts for the less expensive cost of living of places like Florida and Tennessee. Elected officials from those blue states try to brush it off, but it's pretty easy to see that taxpayers are voting with their feet and a U-Haul. Now, there is a new report that backs up what appears to be happening.

Everything about this clip is ludicrous. "Democrats govern really effectively." lmao

California has net population loss for 6 straight years as people flee the state.
— Vince Coglianese (@VinceCoglianese) April 15, 2026

The American Legislative Exchange Council (ALEC) has released its 2026 report entitled "Rich States Poor States." The report measures 15 "policy variables," such as gross domestic product (GDP), domestic migration, and payroll employment. Surprise, or maybe not so surprising, is the fact that states run by Democrats — New York, New Jersey, California, and Illinois — round out the bottom of the list.

Jonathan Williams is the President and Chief Economist of ALEC, and explained the ranking system, saying:

“We rank the states with 15 equal factors, including taxes and spending and tort systems across the states. These 15 factors are something all 50 state legislatures can control or change at any time.”

Of the ten states at the bottom of the list, nine have what the report calls a "Democratic trifecta," meaning that Democrats control both houses of their legislatures and the governorship. The exception being Vermont and its liberal Republican Gov. Phil Scott. So how do those blue states stack up economically? New York came in dead last for the 13th year in a row, with the second-highest marginal personal and highest corporate income tax rates at 14.78 percent and 18.28 percent, respectively. There was no upswing in areas like property tax or sales tax.

Watch for Illinois to pursue the same. Obviously the result will be that these billionaires just pack up and move to a red state, taking their money, jobs, and charitable donations with them and leaving the blue states poorer than they were before.

But hey, the No Kings crowd… pic.twitter.com/OFKaypZEg6
— DuPage GOP (@DuPageCountyGOP) March 2, 2026

But hey, the No Kings crowd love it so full speed ahead no matter how ridiculous it is.

New York's fellow trifecta state, California, came in 47th, with the third-worst income tax rate and the most progressive (or is that aggressive?) income tax policy, and ranked 25th in economic performance, despite Gov. Gavin Newsom's crowing about his economic record. Along with New York Gov. Kathy Hochul, who has begged wealthy New Yorkers who have fled the state to come back so they can be taxed, California has had roughly 1.4 million people leave in the last ten years. In a March interview, Newsom said this about his state's poverty rate:

“Our poverty rate’s about average. And we’re right up there with Florida, Louisiana, and others with the supplemental poverty rate, which has been the case for 40 years."

That may be some fuzzy Gavin Newsom math. Who are the states at the top of the list? Eight out of the top ten states were those with Republican trifectas. Most notably, Florida and Tennessee, where there is no personal income tax and the least progressive income tax policies. In 2025, Florida had the best economic performance, with GDP growing 98 percent in the last decade. Utah had the best economic outlook, with a GDP that has grown a whopping 110 percent in the same decade, and also has a nominally progressive income tax.

ALSO READ: Blue States Double Down on Tax Hikes As Wealth and Residents Head for Red States

All these blue state governors have to see what is going on in their states. Hochul all but admitted to it. But will they ever connect the dots and realize that people will not stick around to be taxed? If people like Hochul and Newsom can't or won't see it now, will they see it when they are left with just the very rich, who aren't affected, and the very poor, who don't have the means to leave?

Jonathan Williams summed it up, saying:

“If there’s anything that ties these ten states, it’s the philosophy of tax, spend, regulate and give to special interests in the name of cronyism. That’s the approach of states that have bad policies.”

"The 19th edition of Rich States, Poor States demonstrates, once again, that states which prioritize limited government and free-market solutions are leading America’s economic turnaround."
~@Lisabnelson pic.twitter.com/6VfzB9RUZY
— American Legislative Exchange Council (@ALEC_states) April 15, 2026

Editor's Note: The Democrat Party has never been less popular as voters reject its globalist agenda.

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