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| New York Governor Andrew Cuomo |
The New York lockdowns ordered by Gov. Cuomo will result in a massive shortfall in state tax revenue in 2021.
Instead of tightening the belt and shrinking the bloated state spending, Cuomo has a different idea: Either get the federal government to make up the deficit or raise taxes.
Cuomo is proposing to raise the top tax rate - on those with annual income over $5 million - from 8.82% to 10.82%, unless the Federal Government comes through with $15 billion in aid to NYC.
Of course, threatening to tax top earners will only result in even more leaving the state. Thus shrinking the New York tax base even more. $1 million-or-more earners pay about 40 percent of the state's income taxes already, yet are less than 1 percent of the total tax filers.
ZeroHedge believes the governor's threat of higher taxes on the wealthy is simply a "reverse hostage" negotiation. The thinking is that Cuomo's hope is that wealthy New Yorkers will put the squeeze on their powerful connections in Washington D.C. to get the federal government to pay the $15 billion in order to avoid the higher tax rate.
And if that happens, ZH correctly notes that all US taxpayers will chip in to bail out one of the most fiscally irresponsible states in the union.
-RW
And if he can't find enough $5 million+ earners to tax, then he'll have to move down to the less wealthy, and so on. Inevitably, the middle class who can't leave NYS will pay.
ReplyDeleteLOTS of lower and middle class rent here in NYC. LOTS of them are single. There might be a greater exodus of that demo than one thinks “can” leave. The question really is where to go?
ReplyDeleteMoving to New York will cost James Harden $13.6M in taxes over the next 3 years
ReplyDeletehttps://www.radio.com/sports/nba/moving-to-new-york-will-cost-james-harden-usd13-6m-in-taxes