Trump says high-tax blue states will become 'ghettos' if wealthy residents flee

WASHINGTON, DC: As Democrats’ policy to tax the rich continues to fuel public debate about the future of blue states and the possibility of rich people migrating from blue states, President Donald Trump predicted that blue states will become ghettos when rich people migrate to red states.

Democrats argue that raising taxes on rich people generates essential revenue to fund public services like healthcare, education, and infrastructure, reduces economic inequality, and creates a more balanced tax system.

Trump argues Democratic states would become ghettos

President Donald Trump declared Democrat-run States will become the “Ghettos” of the USA if companies and “rich people” keep running away due to hefty taxes.

The president shared his prediction in a Tuesday morning post on Truth Social.

“Rich people and Companies are pouring out of Democrat-run Blue States at levels never seen before! If this trend continues, these States will become the ‘Ghettos’ of the Future — No people, no money, no hope,” Trump posted.

Minutes earlier, Trump shared a report by Just the News, published on Monday, July 20, making the case that Illinois appeared to be following California’s “business-repellent formula” with high taxes.

Companies are moving to red states

The report highlighted True Value Hardware’s recent decision, where it announced that the company would be moving its headquarters from Chicago to Fort Wayne, Indiana, in a move similar to the Chicago Bears ditching The Windy City for its neighboring state.

“True Value joins the ranks of other longtime Illinois companies like Boeing, Tyson Foods, Morton Salt and Caterpillar [to leave], the latter of which pointedly cautioned that the state’s inability to balance the budget and lower taxes would drive out businesses,” the report said.

As Trump and Illinois Gov JB Pritzker (D) routinely exchange barbs, the bashing of Illinois was arguably Trump’s moment.

As for California, companies like Chevron, Public Storage, and SpaceX, and Chevron have ditched the state as their corporate homes in recent years.

Major companies flee New York over tax

While New York City remains the nation's financial capital, data shows nearly 5,000 businesses left the city in recent periods, with thousands more scaling back or relocating operations entirely.

The trend, building for years, intensified following Zohran Mamdani's election and inauguration, prompting warnings of a broader "avalanche" or "flood" of departures.

The few major companies that left New York in 2026 include Elliott Management, Citadel, JPMorgan Chase, Apollo Global Management, among others.