While the state of New York and New York City continue to raise taxes on the wealthy, the amount of revenue declines, according to a report. Of course, this paradigm seems obvious to all, except for politicians who make these decisions, it seems.
The Laffer Curve has been well known for decades to anyone taking an Economics class. But it appears that policy leaders in New York didn’t study economics (or maybe they skipped that class). The Citizens Budget Commission has put the amount foregone by the public coffers by enacting punitive taxes. Meanwhile, certain politicians scream that affluent individuals need to “pay their fair share” without specifying a percentage or dollar amount. And yes, some people vote for them.
According to the report, the state of New York and New York City would have received a whopping $13 billion in state and local taxes in 2022 if the number of millionaires had remained at the same level in 2010.
Meanwhile, as the state of New York chases the wealthy away, Florida, Texas, and even California have seen their percentage of national millionaires rise. While the number of millionaires increased in New York, it tripled in Texas and California. In Florida, a jurisdiction with no state income tax, they tripled.
Fair Share.
New York City millionaires pay the highest personal income tax in the US. Even more than tax-obsessed California.
New York City residents who earn over $25 million annually are slammed with a 14.776% marginal personal income tax rate, comprised of the State’s 10.9% and the City’s 3.876% rates. This tops California’s 13.3%.
It should be evident to all that affluent residents are essential to maintain state and local government operations. But if you take them for granted, they vote with their feet and move to Florida. The obvious solution would be to dramatically reduce state and local taxes – or even eliminate them, but current leadership will never be able to fathom such a change, as it would make too much sense.
