We're long past the point where title - from the Beatles' "Tax Man" - is especially fictional.
But over this past few months, it's actually gotten literal: Blue states and cities are brainstorming new ways to tax you literally coming and going.
Let's talk "going" first. Perhaps you've heard - people are leaving blue states. So many are leaving that the next census promises to be a colossal pro-red shift in the electoral college.
They've tried appealing to...
Kathy Hochul making a weak plea for wealthy people who have left New York (to red states like Florida) to come back to pay their high taxes to fund failing (unaccountable) social programs:
— Matt Whitlock (@MattWhitlock) March 18, 2026
“I need people who are high net worth to support the generous social programs we have in… pic.twitter.com/7quhsFyWyn
...well, a weird combination of duty and sentimentality to get people to stop leaving and come back.
I'm not sure how that's worked out, although I feel confident taking a stab at "not at all".
So they're trying to build the financial equivalent of a Berlin Wall - taxes to keep people from leaving and taking their productivity with them:
Across the country, at least ten states, including Washington, are now exploring or have already passed an exit or wealth tax to combat revenue losses from residents fleeing to lower tax areashttps://t.co/rSrea03PNm
— KOMO News (@komonews) April 8, 2026
Washington wants to make it too expensive for billionaires (so far) to try to leave:
[Sandra Swirski, Founder & CEO of Integer] said among the most prominent is California's proposed "Billionaire Tax Act," which would impose a one-time 5% tax on the total net worth of anyone worth over $1 billion living in the state. Which would impact at least 200 people.Across the country, at least ten states are now exploring or have already passed an exit or wealth tax in order to combat revenue losses from residents fleeing to lower tax areas. That includes California, New York, Washington, and Michigan...
And it's not just wealthy individuals. Blue states are trying to stanch the flow of companies fleeing to less hostile states:
Among the other high-profile companies relocating is ExxonMobil, which is moving its corporate registration from New Jersey to Texas. Uber, from California, is also in Texas. Plus, Yamaha Motor from California to Georgia. JPMorgan Chase CEO Jamie Dimon also took a swing at New York City officials this week. He said high taxes are causing a surge of businesses to leave the Big Apple.
I'm going to go out on a short, sturdy limb and say the litigation over trying to tax people for choosing where to live and do business is going to create a whole new class of wealthy lawyers.
So, if they tax you for leaving, certainly blue cities won't tax you for trying to come to them?
Downtown Minneapolis has a collapsing commercial base. Downtown office build values are in free fall, and the local hospitality industry is sending out alarms about their ability to survive the exploding taxes (especially the state's idiotic family medical leave law and taxes) and shrinking market:
Minnesota’s nearly $9 billion hospitality industry “is on the brink of no return,” according to a new report warning years of mounting regulation and economic uncertainty threaten to decimate a key part of the state’s economy.
The new survey from Hospitality Minnesota found only a third of restaurants, hotels and other tourism businesses expect a better spring than last year. In contrast, nearly three-quarters expected a better spring in 2021.
So - when you've got a dying downtown and its near environs that are almost entirely focused on nightlife (the city's tony "North Loop" and Northeast neighborhoods), what better idea than...
...taxing people for coming downtown:
[A city report gives] suggestions to increase revenue, including some new taxes that might raise some eyebrows.
It also suggests ideas like a city-level income tax along with congestion pricing, a controversial tax that was imposed in New York City in 2025.
Congestion pricing – for a city where the lack of congestion, at least among shoppers, diners, workers, lunchers, and entrepreneurs – has become an existential problem?
Oh, have no fear - Minneapolis is also exploring taxing people for leaving:
Real estate transfer tax: Tax imposed on the transfer of property ownership.
Empty Homes tax: Tax on residential or commercial property that remains vacant for a specified period.
In other words, taxing you for selling your house when you leave, and for not being able to sell your house when you leave.
And those who try to stay and try to tough it out:
Betterment levy: Charge on property owners who benefit from an increase in property value due to public infrastructure projects or improvements.
I'm afraid to ask what the city will call "betterment" in a place where pretty much everything, financially and commercially and demographically and governmentally, is getting worse.
