June 13, 2023: California Governor Gavin Newsom addressed concerns about the state’s declining population and budget deficit, urging Americans not to underestimate California’s potential.
During an interview on “Hannity,” Governor Newsom responded to questions about the state’s population decline, stating that more Floridians move to California per capita than Californians move to Florida. He mentioned that 18 states across the country experienced a decrease in population, with California seeing a decline of 0.3%, a first for the state. The state’s Department of Finance reported a loss of 117,552 people from January 2021 to January 2022, bringing the population back to 2016 levels.
In contrast, Florida witnessed an influx of new residents from predominantly blue states with high taxes, with approximately 319,000 Americans moving there in 2022, resulting in a population increase of nearly 2%, surpassing the national growth rate of 0.4% recorded in the U.S. between July 2021 and July 2022.
California attributed its population decrease to reduced births, immigration, increased deaths, and people relocating to other states. However, the high cost of living remains a persistent concern.
California has a state income tax of 13.3%, with the top 1% of Californians contributing approximately half of the state’s tax revenue. In contrast, Florida does not have a state individual income tax. Governor Newsom emphasized that he inherited the 13.3% tax rate and opposed new increases in the top 1% tax and a statewide wealth tax. He highlighted that middle-class families in California pay less taxes than most states across America.
Addressing the issue of significant companies leaving the state, Governor Newsom dismissed it as insignificant, noting that California continues to create new companies and generate more millionaires. He emphasized the state’s economic success, with half of America’s $1 billion valued companies in California. He highlighted California’s outperformance of the nation’s economy, with a 3.1% growth rate compared to the national rate of 2.1% over the past decade. Governor Newsom stated that California’s economy is on track to become the fourth-largest in the world.
Despite the criticisms against California, Governor Newsom urged Americans to recognize the state’s opportunities and expressed his unwavering support for California’s potential. He emphasized his love for the state and encouraged people not to underestimate its resilience.