18 C
Houston
Wednesday, January 20, 2021

As NY politicians eye new taxes on the rich, high earners eye the exits

With Gov. Cuomo now threatening to go for “soak the rich” tax rates if he doesn’t get a federal bailout as ginormous as he wants, it’s well worth remembering just how much New York already depends on these citizens — who can easily afford to move away.

Indeed, many have decamped temporarily during the pandemic — but they’re still paying taxes as New York residents. What if that changes?

Enter a new Manhattan Institute report by Michael Hendrix and Don Boyd, which looks at the fiscal consequences just for New York City — which leans on top earners less that the state government — if the 1 percent wave bye-bye.

The nearly 660,000 New Yorkers (more than 17 percent of all city income-tax filers) who qualify as top earners generated more than 80 percent of New York City’s income-tax revenue in 2018 (the latest year for which complete data are available).

- Advertisement -

They also account for a big chunk of the take from the unincorporated-business tax and sales taxes, in all “giving” over 22.6 percent of the city’s total tax revenue.

If only 1 percent of these top-earners permanently revoke their New York residency and do their business elsewhere, it could cost city government $220 million a year in tax revenue. If 3 percent go, it’s $576 million. And if 5 percent leave, it’s $933 million.

Not to mention the loss to the state, which would likely have to cut what it sends the city.

It could be far worse. In some of Manhattan’s richest neighborhoods, departure rates this year are as high as 50 percent — 10 times the study’s worst-case-scenario.. And a Sienna poll this August found that 44 percent of six-figure earners had considered leaving the city in the prior four months.

The real question is: How many will return when the virus is beaten? Everyone now knows how practical remote work can be, especially for top-paying jobs in areas like legal, accounting and financial services.

If New York politicians aren’t careful, they may turn the temporary exodus amid the pandemic into a permanent devastation of the tax base.

Read More at NYPost

Latest news

Biden gender equality orders rankles religious conservatives

President Biden on Wednesday announced an executive order confirming religious conservatives’ fears that he...

Barrage Of New Countries And Airlines To Adopt Vaccine Passports

Authored by Steve Watson via Summit News,Several more countries have indicated that they are to adopt vaccination passports, meaning anyone crossing their borders will...

Biden Plans To Immediately Reinstate Taxpayer Funding For Abortions

As President Joe Biden rushes to undo the Trump administration’s policies, pro-abortion changes are taking priority. One of the first directives Biden and his team...

New York Eyes Legalizing Marijuana And Online Sports Betting To Ease Budget Woes

ALBANY, NY — New York Governor Andrew M. Cuomo is pushing for the legalization of marijuana and mobile sports betting to help cover budget...

Related news

Biden Plans To Immediately Reinstate Taxpayer Funding For Abortions

As President Joe Biden rushes to undo the Trump administration’s policies, pro-abortion changes are taking priority. One of the first directives Biden and his team...

If Biden wants unity, he’ll move slowly

I need to ponder a while. Maybe we all do. ...

Biden’s heartfelt appeal for unity likely to be unavailing

“We must end this uncivil war,” Joe Biden proclaimed shortly he became the 46th...

The Biden presidency will tell the story of Catholicism in America

President Joe Biden just became the second Roman Catholic to ever hold the office,...

Amanda Gorman’s Inauguration Poem Shows What The Left Truly Believes

The young poet's performance was a spoken-word attack on Trump and his followers. Near the end of Joe Biden’s inauguration, 22-year-old Amanda Gorman offered a...

A Trump fan’s best-case scenario for the Biden era

Joe Biden is now the president, and there's nothing Republicans can do to change...

Liz Cheney Got Her First Primary Challenger After Impeachment Stunt

Wyoming Republican Rep. Liz Cheney drew her first primary challenger from Republican State Sen. Anthony Bouchard Wednesday. Wyoming State Sen. Anthony Bouchard files primary challenge...

Media Fever Dream Dashed After Predicting Trump Would Leave In Chains

Despite the left’s insistence that his departure would require force, outgoing President Donald Trump peacefully left the White House and Washington, D.C., on Wednesday...