Why? Isn’t this what they want? Aren’t high taxes preferable for Democrats, who are the predominant voters in New York City? This is what they vote for. This is what the politicians they vote for want. Why are they leaving when they’re getting what they want?
New York City facing exodus after officials hike taxes to plug Covid-19 shortfall
New York is bracing for an exodus of its wealthiest residents after officials passed a budget that will see them pay the US’s highest tax rate, as they desperately seek to boost their Covid-hit economy.
Under the new rate, which is expected to soon be rubber-stamped by Governor Andrew Cuomo, the city’s top earners could pay up to 14.8 per cent tax – a combined federal, state, and city tax which could reach 52 per cent.
The move sees the state overtake California, which has the current highest combined tax rate for top earners in the US, and much of Europe.
Business leaders and CEOs this week warned that the increase is likely to backfire by driving away the very people and companies the city relies on for its revenue.
“Bell Tolls for NYC: Quality of life plummets, taxes rocket – and city faces uncertain futureâ€, read the headline on the front page of the New York Post tabloid on Wednesday.
Ah, so the focus may be on NYC, but, it’s actually all of the state of New York. When went for China Joe 60.9% to 37.7% Trump, so, aren’t the people who want higher taxes? Including so many of the wealthiest residents, who constantly Virtue Signal and say things like “I want my taxes raised”?
A recent study showed that at least 20 per cent of banks and financial services firms have thought about relocating workers to other locations outside of New York. Dozens already have.
It’s a good example as to why this whole “tax the rich (because government is incompetent with the money they already take)” doesn’t work. Because they simply leave. And take jobs with them. And take fundraiser money for politicians with them. And instead of some tax money, NY and NYC get none.
The wealthiest two per cent of New Yorkers contribute half of the city’s revenue. However, many of them fled at the start of the pandemic.
New York was the number one state for population loss in the US last year, according to Census Bureau data. More than 300,000 New York City households in higher-income neighbourhoods filed change-of-address forms, resulting in the largest decline in property tax receipts in nearly 25 years.
The other problem here is that many of these people bring their moonbattery with them, and often advocate for the same policies, including high taxation and policies that require raising taxes, to the Red areas.