By Reagan Steele – Business & Economic Policy Writer

For years, Governor Gavin Newsom has insisted California “dominates in every single category.” Business leaders and economists, however, often counter with a different list of categories where California leads: highest taxes, most expensive energy, elevated cost of living, regulatory complexity, and deteriorating infrastructure.

Now, new U.S. Census data reinforces that California’s challenges are not isolated but part of a broader trend. According to an analysis by Visual Capitalist, from 2020 to 2025 the three largest liberal states in the country, California, New York, and Illinois, each experienced net population loss.

• California: –0.5%
• New York: –1.0%
• Illinois: –0.8%

Collectively, these states represent more than 70 million Americans. The numbers reflect a sustained, multi-year shift rather than a temporary dip.

At the same time, states with lower taxes, lighter regulatory burdens, and more predictable business climates are experiencing the fastest growth.

• Idaho: +10.4%
• Florida: +8.9%
• Texas: +8.8%

These gains are not accidental. Companies and workers continue to migrate toward states with lower operating costs and a clearer path for economic mobility.

This pattern is not limited to the United States. Globally, high-net-worth individuals have increasingly favored low-tax and business-friendly jurisdictions, including Italy, which is attracting record numbers of wealthy expatriates, and Dubai, which has become a magnet for entrepreneurs and investors. In contrast, high-tax European economies such as Germany are seeing growth slow under the weight of rising energy costs, expansive regulatory frameworks, and political priorities that often sideline economic competitiveness.

California, New York, and Illinois face the same fundamental equation. For decades, states like California relied on natural advantages, including weather, geography, and industry clusters, to keep people anchored. The current data suggests there is a limit to how far those advantages can be stretched.

With continued outmigration and the long-term fiscal pressures that follow, the question is whether leaders in Sacramento will adjust course. So far, the dominant response has been to dismiss concerns rather than address them. But residents do not need speeches. They need results.

The numbers tell a simple story: people are voting with their feet.