Wealth transfer from blue to red states boosts Idaho by $72B

Nearly $2 trillion in economic growth, a sum some are calling the largest transfer of wealth in the nation’s history, and a figure that is larger than the GDP of some countries, has been making its way from “blue” states to “red” states, including Idaho during the past decade.

The staggering shift in wealth was revealed by the Committee to Unleash Prosperity, a conservative economic group that used Internal Revenue Service data of income and state-to-state migration compiled to track the movement in cumulative income between the states whose color was defined by votes cast in the 2024 presidential election.

Topping the list of blue states seeing big dollars exit for greener pastures, New York suffered the greatest hit, losing $660 billion between 2012 and 2023. California was a close second with $503 billion in losses during the same time period.

At the other end of the scale, Idaho, along with an additional 14 red states experienced net AGI gains resulting from interstate migration. Florida topped the list of those on the plus side at $1.3 trillion.

The Gem State showed $72 billion in economic gains to land at No. 8 overall on the list of those benefiting from this huge movement in money moving from blue states to red.

“Our analysis also shows that nearly every blue state has lost income due to moving vans and nearly every red state has been a winner,” Unleash Prosperity said in a press release sharing the data.

“So, as blue states lose taxpayers, what is their strategy? As many as 10 blue states are contemplating raising their income or wealth taxes,” the statement read.

Other red states experiencing huge financial gains include Texas ($371 billion), Arizona ($203 billion), both North Carolina and South Carolina ($187 billion each), Nevada ($150 billion) and Tennessee ($112 billion).

On the downside, New York and California were joined by Illinois, losing $400 billion, New Jersey (-$212 billion), Maryland (-$120 billion), Massachusetts (-$118 billion) and Connecticut (-$105 billion).

Collectively, the figures compiled indicate a broader movement of wealth away from the traditional hubs of industry in the Northeast, the Rust Belt and Midwest.

Interestingly, three western blue states ― Colorado ($127 billion), Washington ($119 billion) and Oregon ($61 billion) all experienced gains equal to several red states.

Among 16 red states that lost wealth, Pennsylvania (-$115 billion) and Ohio (-$106 billion) represented the two largest drops.