“The Giant Sucking Sound”: Exodus From California Continues for Taxpayers & Businesses
10th January 2026
During the 1992 Presidential Debate, independent candidate Ross Perot famously warned that “there will be a giant sucking sound going south” due to the cheaper Mexican labor and lower regulatory demands on businesses. That sound is being heard again, but this time it is coming from California, which is virtually chasing taxpayers and companies out of the state with a massive state deficit, rising taxes, crippling regulations, and wasteful programs.
Recently, Gavin Newsom boasted, “California isn’t just keeping pace with the world — we’re setting the pace.”
Recent data shows he is right.
There is a record number of U-Hauls fleeing the state — more than any other state. Indeed, the only thing harder to find than a wealthy taxpayer in California appears to be a U-Haul.
According to U-Haul’s data, the state is again leading blue states in the exodus. The Washington Post noted this week that “California came in last. Massachusetts, New York, Illinois and New Jersey rounded out the bottom five. Of the bottom 10, seven voted blue in the last election.” Conversely, “nine of the top 10 growth states voted red in the last presidential election,” with Texas again leading the growth states.
The Post wrote that the conclusions are inescapable: “People want to live in pro-growth, low-tax states, while the biggest losers tend to be places with big governments and high taxes.”