Despite declining population and a budget deficit of about $32 billion, Governor Gavin Newsom is emphasizing that Americans should not underestimate the state of California. During an exclusive interview on “Hannity” on Monday, California Governor Gavin Newsom laid out the reasons behind the marked drop in the state’s population during the years 2021 and 2022, and why it is considered to be below Florida in terms of performance.
When asked about the population decline in his state, Newsom stated, “Per capita, there are more people moving to California from Florida than from California to Florida.”
According to the state Department of Finance, between Jan. 1, 2021, and Jan. 1, 2022, California lost 117,552 people, bringing its population to the same level as in 2016. In contrast, in 2022, Florida saw a large increase in new residents migrating from predominantly Democratic high-tax states. According to data from the National Association of Realtors, approximately 319,000 Americans moved to Florida in that year, representing a nearly 2% increase in its population, well above the national growth rate of 0.4% recorded in the United States between July 2021 and July 2022.
California attributed the decline in its population to reduced births, immigration, an increase in deaths and migration to other states. However, one of the factors that continues to be a cause for concern in the Golden State is its high cost of living. Currently, the state income tax in California is 13.3%, and the richest 1% of Californians pay about half of the state’s tax burden, while Florida has no state individual income tax.
Newsom responded to this by stating, “My point is this: We’ve had a progressive tax system, but it wasn’t me who set the 13.3%. That was implemented before he took office. I have opposed further tax increases for the richest 1%. I have opposed the state wealth tax. I’ve never been a profligate Democrat.”
When asked about major businesses leaving the state, Governor Newsom downplayed this aspect, calling it “insignificant” and “inconsequential.”
Newsom said, “Every day more companies are created, more millionaires.” He also noted that “half of the companies valued at $1 billion in the United States are located in California.” He noted that the state economy has outperformed the country by 3.1% over the past decade, compared to 2.1% nationally. Newsom stressed that he has listened to these criticisms for more than half a century.
The governor went on to tout California’s economic success, describing it as the “epicenter” of the United States and mentioning that the state is on track to become the fourth largest economy in the world.
Newsom proclaimed, “In 2021, California had 7.8% growth in this country’s GDP, making it one of the fastest growing economies in the world. This state remains the epicenter of the U.S. economy.” He also added that “25.6% of all U.S. jobs were generated in California in April” and that over the past two fiscal years the state has enjoyed operating surpluses totaling $177.7 billion.
Despite criticism of California, Governor Newsom urged Americans to remain open to the opportunities the state offers.
Newsom: “I love this state. Don’t write us off.”