Cities and states have lost billions of dollars in combined tax revenues during the economic downturn, caused by the coronavirus pandemic. A change that the Trump administration made to the tax code a few years ago, has also diminished some local coffers, because it has caused a slice of super-wealthy residents in high-tax states such as California and New York to move to places with lower taxes, like Florida and Texas.

With rising economic inequality, the exodus of even a fraction of the 1% (and their taxes) can impact everyone who is left behind - especially the most vulnerable, according to Richard Florida. A professor at the University of Toronto’s School of Cities and co-founder of CityLab, Florida explains the long-lasting consequences of wealth flight.