Trump touts Midwest tax exodus as True Value quits Illinois for Indiana

Trump the president pointed to hardware wholesaler True Value's move to Fort Wayne and to prior corporate exits as proof that high-tax states are losing companies and jobs.

First Published: July 21, 2026, 4:39 AM ET

WASHINGTON D.C. — Donald Trump renewed his warning that high taxes are draining companies from blue states.

Here is the full post on truthsocial: “Across the nation, Trump’s long-predicted high-tax exodus has a Midwest sequel: https://justthenews.com/government/white-house/california-illinois-trumps-predicted-tax-apocalypse-has-midwest-sequel”

The president amplified a report describing Illinois as “Taxifornia 2.0,” a state losing businesses to Texas, Florida and neighboring Indiana, in a post on Truth Social on July 21, 2026 at 8:22 AM ET. The linked article documents the departure of True Value Hardware, a wholesaler founded in Illinois in 1948. The company is relocating its headquarters to Fort Wayne, Indiana, according to justthenews.

“Job-producing people and companies are being forced to flee at levels never seen before,” Trump said in an April post cited by the report. “Remember, once people and companies leave, they are never coming back.”

The stakes fall hardest on Illinois, which loses headquarters jobs and tax revenue with each corporate exit, while Indiana, Texas and Florida gain payrolls and investment. True Value cited long-term stability and a more business-friendly climate after its 2024 bankruptcy and acquisition by rival Do It Best, according to justthenews. The move follows earlier exits by Boeing, Tyson Foods, Morton Salt and Caterpillar. Caterpillar warned that the state’s failure to balance its budget would push companies away, according to justthenews.

The pattern mirrors California, where Charles Schwab left San Francisco for Westlake, Texas, in 2019, Hewlett-Packard moved to Houston in 2020, and Tesla, Chevron and SpaceX departed in following years, according to justthenews. The U-Haul Growth Index, a measure of where people and companies relocate, shows workers and entrepreneurs leaving Illinois and California for Texas and Florida, according to justthenews.

For the average reader, the shift can mean a higher share of state costs falling on those who stay, plus fewer local hiring options when a legacy employer departs. Residents in destination states may see new jobs and construction, while home states face pressure on services tied to shrinking tax bases.

Has this happened before? This has happened before. California has watched high-profile firms leave for lower-tax states since 2019, and Illinois now records similar departures, according to justthenews. Public Storage joined the California exodus this year, extending a trend that began nearly seven years ago, according to justthenews.

The next decisions rest with state lawmakers and corporate boards weighing tax relief and relocation. A March 2025 Pew Research Center survey found 81% of Democrats and Democratic-leaning independents favored raising taxes on large businesses, and 74% supported increases on households earning over $400,000, according to justthenews. No date for any state tax overhaul has been announced.

Corporate flight from high-tax cities is not the first time economics reshaped an American skyline. In the 1970s, New York City neared bankruptcy as firms and residents fled rising taxes and crime, and the federal government first refused a bailout. That standoff prompted the 1975 Daily News headline “Ford to City: Drop Dead.” The city eventually secured loans and clawed back solvency over the following decade. The episode showed that a metropolis can survive a mass exodus, though the recovery took years and left scars on public services.