Liz Peek joined Stuart Varney on Varney & Co to discuss the mounting evidence that high-tax blue states are hemorrhaging wealth as affluent residents relocate to tax-friendly red states. Citing data from the Committee to Unleash Prosperity, Peek noted that blue states lost a staggering $2 trillion in adjusted gross income to red states between 2012 and 2022. IRS data further revealed that California alone lost more than $11 billion in income to other states between 2022 and 2023, while New York lost $10 billion, Illinois $6 billion, and Massachusetts $4 billion.
Peek argued the consequences extend far beyond lost tax revenue. As residents flee, these states are losing political power — California has already lost seats in the House of Representatives, and New York lost a seat in the last census. “It’s also electoral college votes that are on the line here,” Peek warned, noting that Democrats will have to “work even harder to maintain their political chances” of winning the House and presidential elections.
Despite the overwhelming evidence, Peek expressed frustration that Democratic leaders continue doubling down on the same policies. She pointed to New York City Mayor Zohran Mamdani’s recent budget, which she described as “pretending he made it whole by saving money” when he actually raised taxes. She also highlighted billionaire Ken Griffin’s threat to halt a $6 billion development after the city slapped a tax on his second home. “They don’t care if the poor get poorer as long as the rich get poorer too,” Peek said. “It isn’t even redistribution. There’s not much wealth left to distribute.”
Peek also weighed in on the California gubernatorial race, predicting that Javier Becerra and Steve Hilton appear headed to a matchup in the November election. She called Becerra a “boring, traditional Democrat” who won’t energize the left, and said his candidacy is a poor choice for Democrats — welcome news for Republicans hoping to capitalize on voter frustration with the state’s high costs and heavy regulation.
