New York In Financial Collapse: State Revenue In Free-Fall After Tax Rates Skyrocket!
New York has taxed the wealthy right out of the state, and as they leave, they are taking their tax money with them.
It is leaving New York State tax revenue in a free-fall
New York is top in the U.S. in terms of its residents leaving for other states.
The latest figures show, that in 2015, New York had a population of 19.5 million. By 2016 (the latest year available), it shrank to about 19.3 million, resulting in a net drop of 186,000 people.
Any growth has been relegated to New York City and its suburbs, as well as the Albany area.
But the rest of the state is struggling: Population dropped nearly 93,000 in the 42 counties that had a decline between 2010 and 2017, a fall of 3 percent, the Census Bureau figures showed.
The rich are leading the exodus. More than 41 percent of those who left earn $150,000 or more, the largest proportion among the five income brackets in the study. By contrast, just 8.4 percent of now-former New Yorkers earned less than $50,000, a study found.
Projected income tax revenues for the year just dropped $2.3 billion, Gov. Andrew Cuomo and Comptroller Tom DiNapoli announced Monday. That was after falling $500 million in December.
Governor Cuomo even finally gets what’s going on:
“‘Tax the rich! Tax the rich! Tax the rich!’ We did. Now, God forbid, the rich leave,” he said.
He noted that the top 1 percent of New York earners provide 46 percent of the state’s personal income tax revenues, and cited anecdotal evidence that wealthy locals are heading for lower-tax states.
“That’s a $2.3 billion drop in revenues. That’s as serious as a heart attack. This is worse than we had anticipated,” the governor said in Albany.
The Partnership for New York City, a group of 200 CEOs, has said the same thing.
For decades, both California and New York have seen their residents flee in droves from high taxes and over-reaching regulation. Many are moving to business friendly states like Texas that have no income tax.
This leaves the two states with even less revenue, causing their legislatures to try to make up the shortage, by raising taxes again. This of course, causes more to flee!
There’s a hole in the bucket dear Liza, dear Liza! There’s a hole in the bucket, dear Liza… a hole!
New York state tops the charts in terms of out migration from the state. It is followed by Illinois, California, New Jersey and Connecticut.
Where are they going?
In comparison, the top five largest in-migration states are, in order, Florida, Texas, Arizona, North Carolina, and Georgia.
Governor Cuomo tries to blame President Trump and the new tax law’s $10,000 cap on state and local tax deduction. But the exodus started long before the SALT cap. The problems started long ago.
One percent of the New York top income earners provide 46 percent of the state’s personal income tax revenues. Cuomo even said that Albany can’t go to the well and tax the wealthy again because that would only worsen the situation.
Cuomo acknowledged, when asked by a reporter Monday, that some people could benefit from the tax overhaul, but he said the problem is rich New Yorkers who are hurt by the deduction cap.
He is talking about cutting back the $176 billion spending plan he released last month.
Maybe these socialists will eventually get it. As the great Margaret Thatcher said:
“The trouble with Socialism is that eventually you run out of other people’s money.”