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Americans leaving high-tax blue states for low-tax red states in droves

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Americans leaving high-tax blue states for low-tax red states in droves

Americans are voting with their feet, leaving high-tax blue states for lower-cost, Republican-led states and reshaping the nation’s economic and political map, according to new Census Bureau data.

As states battle for residents and businesses, low-tax red states are attracting jobs, investment and population growth. Democratic-led states continue relying on higher taxes to fund public services and social programs, even as companies and wealthy residents move elsewhere.

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With affordability set to dominate the 2026 midterms, the migration trend points to continued appeal for Republican-backed economic policies, despite Democrats’ attempts to pin economic frustrations on President Donald Trump.

If the trend persists, it could also reshape the political landscape, increasing the influence of faster-growing states in both state capitals and Washington.

AMERICA’S NEXT ECONOMIC POWERHOUSE MAY BE RISING IN RED-STATE TERRITORY

Rear view of U-Haul moving truck stopped at a red light near Hillside Blvd with hills in the background, South San Francisco, California, October 16, 2025.

New Census Bureau data show ongoing migration from high-tax states to lower-cost states. (Smith Collection/Gado/Getty Images / Getty Images)

Census Bureau data show the nation’s highest-tax states are losing residents, while Southern and Sun Belt states continue posting some of the strongest population gains. Seeking lower housing costs, lighter tax burdens and a more affordable cost of living, Americans are increasingly leaving high-cost coastal states that have seen domestic outmigration accelerate in recent years.

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The migration shift reflects a broader divide over taxation and government spending.

New York collected more state and local taxes per resident than any other state in fiscal year 2023, at $12,506, according to Census Bureau data. Democratic-led Connecticut, New Jersey and California also ranked among the nation’s most heavily taxed states.

Connecticut collected $9,388 in state and local taxes per resident, while New Jersey collected $9,178. Many of those states rely on progressive income tax systems to fund public schools, mass transit and other government services.

THE RED STATES RACING AHEAD IN AMERICA’S POWERFUL WEALTH BOOM — AND THE STATES FALLING BEHIND

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By contrast, Mississippi, Tennessee and Alabama ranked among the lowest in per-capita tax collections, reflecting a governing philosophy centered on lower taxes and a lighter burden on residents and businesses.

That approach appears to be attracting both people and investment. Several Republican-led states have embraced aggressive tax-cutting strategies aimed at drawing workers, retirees and businesses.

Tennessee has no state income tax, while Arizona recently adopted a flat tax. Mississippi and South Carolina have enacted multi-year tax-cut plans and are pursuing the eventual elimination of their state income taxes altogether.

Supporters of the lower-tax approach argue it has helped drive migration to the South and Sun Belt, particularly as remote work gives Americans more flexibility over where they live and businesses greater freedom over where they invest.

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Critics counter that lower-tax states may struggle to keep pace with infrastructure needs and public services as their populations expand.

As Americans continue voting with their feet, the growing divide between red- and blue-state fiscal models is emerging as one of the nation’s defining economic and political fault lines.

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Dell unveils $699 XPS 13 laptop in challenge to Apple’s MacBook Neo

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Dell unveils $699 XPS 13 laptop in challenge to Apple’s MacBook Neo


Dell unveils $699 XPS 13 laptop in challenge to Apple’s MacBook Neo

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BOJ may heed calls to pause bond taper next year

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BOJ may heed calls to pause bond taper next year


BOJ may heed calls to pause bond taper next year

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Oil prices rise more than 2% as Israel moves further into Lebanon

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Oil prices rise more than 2% as Israel moves further into Lebanon


Oil prices rise more than 2% as Israel moves further into Lebanon

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United flight turns around over Atlantic after onboard device sparks alarm

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United flight turns around over Atlantic after onboard device sparks alarm

A United Airlines flight bound for Spain returned to Newark Liberty International Airport on Saturday night after a potential security concern prompted the aircraft to turn around over the Atlantic Ocean.

United Flight 236 departed Newark en route to Palma de Mallorca, Spain, but reversed course about 90 minutes into the trip and landed back in New Jersey later that evening.

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A spokesperson for United Airlines told FOX Business there were 190 passengers and 12 crew members aboard the Boeing 767 aircraft.

“United flight 236 from Newark to Palma De Mallorca, Spain safely returned to Newark to address a potential security concern,” the airline said in a statement. “The flight continued to Palma De Mallorca with a new crew.”

UNITED FLIGHT CARRYING 221 PASSENGERS HITS POLE AND TRUCK ON APPROACH TO NEWARK

A Boeing 767 belonging to United Airlines takes off

A United Airlines Boeing 767 takes off. A United flight from Newark to Palma de Mallorca, Spain, returned to New Jersey after a potential security concern prompted the aircraft to turn around over the Atlantic Ocean. (Andia/Universal Images Group via Getty Images / Getty Images)

AirLive.net reported that the incident began after flight attendants instructed passengers to disable their Bluetooth connections. Passengers later said the crew repeatedly warned that the request came from United’s operations center and that the flight could not continue unless the issue was resolved.

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One passenger told the outlet that crew members made several announcements regarding a potential safety concern linked to a Bluetooth device and eventually issued a final warning before the aircraft changed course.

The warnings reportedly became increasingly urgent as crew members attempted to identify the source of the device. Passengers cited by the publication said flight attendants indicated the issue had been escalated and that the aircraft could be forced to return if the matter remained unresolved.

UNITED PILOT REPORTS MIDAIR DRONE SCARE NEAR AIRPORT DURING LANDING APPROACH

United Airlines plane taxis on the tarmac

A United Airlines flight from Newark to Spain turned around over the Atlantic and returned safely to New Jersey after a potential security concern emerged onboard. Reports indicate the issue stemmed from a Bluetooth device whose visible name included (REUTERS/Eduardo Munoz/File Photo / Reuters Photos)

Air traffic control communications reviewed by AirLive.net indicated the aircraft returned to Newark after concerns arose about the name of a Bluetooth-enabled device visible to others onboard.

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The outlet reported that the device’s discoverable name included the word “bomb,” which led to a security response and the flight’s eventual return to Newark.

The flight crew ultimately decided to discontinue the trip and return to Newark rather than continue across the Atlantic with the issue unresolved, according to the report.

UNITED AIRLINES RAISING TICKET PRICES UP TO 20% AS FUEL COSTS SURGE AMID IRAN WAR

Map showing the flight path of United Airlines Flight 236 from Newark Liberty International Airport toward Spain before the aircraft reversed course over the Atlantic Ocean and returned to Newark.

Flight-tracking data shows the route of United Airlines Flight 236, which turned around over the Atlantic Ocean and returned to Newark Liberty International Airport while en route to Palma de Mallorca, Spain, on May 30, 2026. (Credit: FlightRadar24.com / Fox News)

After the aircraft landed safely, law enforcement officers and security personnel met the plane. Passengers were removed while authorities conducted a security inspection.

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Travelers were permitted to take only limited personal items with them as they exited the aircraft, according to the report. Passengers were later rescreened before boarding a replacement flight, while the aircraft and checked luggage underwent additional security screening.

Passengers were transported around the airport while security personnel inspected the aircraft, according to the report.

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United has not publicly identified the passenger connected to the device or announced whether any charges or penalties are being considered.

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FOX Business has reached out to the Port Authority of New York and New Jersey for additional information about the incident.

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AUKUS to develop unmanned undersea vehicles, delivery set for 2027

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AUKUS to develop unmanned undersea vehicles, delivery set for 2027


AUKUS to develop unmanned undersea vehicles, delivery set for 2027

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Berkshire Hathaway Has First Takeover by CEO Abel, Paying $8.5 Billion for a Homebuilder

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Berkshire Hathaway Has First Takeover by CEO Abel, Paying $8.5 Billion for a Homebuilder

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Berkshire Hathaway to Buy Homebuilder Taylor Morrison for $6.8 Billion

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Berkshire Hathaway to Buy Homebuilder Taylor Morrison for $6.8 Billion

Berkshire Hathaway agreed on Sunday to buy home builder Taylor Morrison Home Corp.for TMHC -0.39%decrease; red down pointing triangle $6.8 billion in cash. 

Berkshire will pay $72.50 per share for the Scottsdale, Arizona-based home developer, a 24% premium to Taylor Morrison’s closing stock price of $58.50 on Friday.

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Could GLP-1 drugs become oncology’s next big opportunity?

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Could GLP-1 drugs become oncology’s next big opportunity?

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German infrastructure fund misses its spending targets, Handelsblatt says

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German infrastructure fund misses its spending targets, Handelsblatt says


German infrastructure fund misses its spending targets, Handelsblatt says

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Wall Street Brunch: Shrodinger’s IPO (undefined:QNT)

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Wall Street Brunch: Shrodinger's IPO (undefined:QNT)

3D illustration of a working quantum computer. Quantum computing concept

adventtr/E+ via Getty Images

Listen below or on the go via Apple Podcasts and Spotify

Quantinuum attracts strong demand ahead of debut. (0:17) Broadcom earnings focus shifts to accelerating AI chip demand. (1:09) May jobs report tests outlook for a cooling labor market. (1:58)

The following is an abridged transcript:

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Quantum computing firm Quantinuum (QNT) is set to go public this week, with reports that the offering is already oversubscribed by a double-digit multiple of the shares available.

The company, which is owned by Honeywell (HON), plans to offer 21.05 million shares at between $45 and $50 each. At the top end of that range, Quantinuum would raise about $1.05 billion and be valued at roughly $13 billion.

The stock is expected to trade on the Nasdaq under the ticker symbol QNT.

Quantinuum generated 2025 revenue of $30.9 million, up from $23 million in 2024, while its net loss widened to $192.6 million as the company continued investing in growth and commercialization.

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The company recently signed an agreement with the U.S. government to receive research and development funding aimed at addressing technology bottlenecks in fault-tolerant trapped-ion quantum computers.

On the earnings front, Broadcom (AVGO) highlights the week when it reports Wednesday after the close.

Wall Street expects EPS of $2.40 on revenue of about $22 billion.

Analysts have turned increasingly bullish ahead of the report.

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Oppenheimer expects a beat-and-raise quarter driven by AI demand and says Broadcom remains the number-two AI accelerator player behind Nvidia (NVDA).

Susquehanna also raised its price target ahead of results, citing continued momentum in Broadcom’s custom AI chips and networking business.

Analysts said AI revenue could exceed $100 billion in fiscal 2027 as customer demand continues to broaden.

Also on the earnings calendar, Hewlett Packard (HPE) and Credo Technology (CRDO) report Monday.

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Earnings spotlight: Tuesday: Palo Alto Networks (PANW) and Ulta Beauty (ULTA) are up Tuesday.

CrowdStrike (CRWD) and Medtronic (MDT) joing Broadcom on Wednesday.

Ciena (CIEN), Lululemon (LULU) and DocuSign (DOCU) weigh in on Thursday.

On the economic calendar, Friday’s jobs report is the main event.

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Economists expect 96,000 jobs to have been added in May, down from 115,000 in April, while the unemployment rate is expected to hold at 4.3%.

Average hourly earnings are forecast to rise 0.3% for the month.

Wells Fargo says the labor market remains stuck in a low-fire, low-hire environment that is no longer deteriorating, but isn’t showing meaningful improvement either.

In the news this weekend, Waymo unveiled its new Ojai robotaxi minivan, an all-electric vehicle designed specifically for autonomous ride-hailing rather than retail sales.

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The company says the vehicle is roomier, cheaper to operate and built around its sixth-generation self-driving system. Analysts say the lower operating costs could eventually help Waymo undercut human-driven ride-hailing services in some markets.

And Microsoft (MSFT) and Nvidia (NVDA) are expected to unveil the first Windows PCs powered by Nvidia chips as the primary processor at Computex and Microsoft’s Build conference this week.

The launch could mark a significant expansion of Nvidia’s push beyond AI servers and into the PC market.

And for income investors, McDonald’s (MCD) goes ex-dividend on Tuesday and pays out on June 16.

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Halliburton (HAL) goes ex-dividend on Wednesday with a June 24 payout date.

Cigna (CI) goes ex-dividend on Thursday and pays out on June 18.

And Western Digital (WDC) goes ex-dividend on Friday with a payout date of June 17.

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