Turley Says Blue States Are Acting Like ‘Deranged Exes’ To Keep Wealthy Residents Paying
Legal expert and George Washington University law professor Jonathan Turley issued a sharp warning Friday regarding a shift in tax strategies emerging from high-tax, Democrat-led states.
During an appearance on the Fox Business program “Kudlow,” Turley characterized these emerging regulations as legally dubious efforts to “capture” or “trap” wealthy individuals who have already moved to other states.
The discussion follows moves by Democratic New York Governor Kathy Hochul to advance a pied-à-terre tax. This specific measure targets wealthy individuals who no longer live in New York City but maintain high-value secondary residences there.
Turley argued that such efforts represent a significant legal overreach, as states attempt to extend their regulatory reach far beyond their own borders.
“The blue states are solving their problem with this exodus of people leaving by making taxes retroactive and trying to essentially capture people in the state,” Turley told host Larry Kudlow.
He compared the aggressive nature of these regulations to a “deranged ex-spouse in denial,” explaining that states are increasingly refusing to acknowledge when a taxpayer has officially relocated. “They just say you really didn’t leave us. You still love us, you’re still here. You’ve got all of these so-called items of affection here. You must still want to be with us.”
These “items of affection” refer to so-called “Teddy Bear laws,” where states use sentimental or residual ties—such as keeping a storage unit, a boat, or a secondary apartment—as grounds to claim an individual is still a tax resident.
Turley suggested these policies are symptoms of “economic atrophy,” noting that instead of competing with states like Florida or Texas by creating “magnets for new residents,” states like New York and California are focusing on extracting revenue from those heading for the exit.
New York is not alone in this trend. Washington and Virginia have also seen pushes for tax hikes aimed at wealthy residents. Meanwhile, California has moved forward with the “Billionaire Tax Act,” a proposed 5% levy on residents with a net worth exceeding $1 billion.
A controversial pillar of that proposal is its design to pursue former residents even after they have moved, taxing them on the paper valuations of their companies.
Turley described the current environment as “absolutely bizarre,” noting that these states are watching their economies contract while businesses and high-net-worth individuals seek more “positive environments” elsewhere. “You’re watching these economies contract,” Turley added. “And instead of looking at Texas, looking at Florida… they’re trying to capture or trap people who are trying to leave.”