Skip to comments.The New 2018 tax law only gives high-tax states what they deserve
Posted on 02/11/2019 8:45:59 AM PST by SeekAndFind
Gov. Andrew Cuomo recently complained that the cap on the SALT (state and local tax) deduction is causing people to flee New York. Thats like a recent college graduate complaining that his parents decision to cut off his monthly allowance has forced him to get a job and face a budget.
Its not the new SALT cap causing New Yorkers to flee. Even before the Tax Cuts and Jobs Act limited the SALT deduction to $10,000, New Yorks population fell by 1.9 million from 2005 to 2016. Rather, if anything, it would be the states high taxes.
At $6,993 per taxpayer, New Yorks state-and-local-tax burden is 58 percent, or $2,573, higher than the average burden across the United States.
For very high-income earners, the gap is even wider. According to 2015 IRS tax data, the average millionaire living in New York paid $502,191 in state and local taxes, compared to $71,113 for the average Texas millionaire.
Of course, now that the 40 percent-off sale on state and local taxes is over for Americas highest income earners, they can be expected to look even harder for places that offer everyday low taxes. The cap has left high-tax states no place to hide.
Consider: While New York has a top personal-income-tax rate of 12.7 percent, places such as Texas and Florida boast 0 percent rates no personal income tax at all.
Its no wonder that New York ranked worst in net inflow of income, according to the most recent Rich States Poor States Report. For every $1 of income residents leaving the state took with them from 1997 to 2016, incoming residents brought in only 71 cents. In comparison, every $1 that left Florida was offset by $1.75.
(Excerpt) Read more at nypost.com ...
They’ve always said “TAX THE RICH!” and now they are getting what they want.
Enjoy the suck New York!
FYI, New York and other states do not allow the deduction of federal taxes against their state income tax.
So cry all you want _ NY is not fair to their taxpayers.
Gov. Cujo is depopulating NYS and that’s the way the liberals want it.
The fracking ban consigned upstate NY to continual economic stagnation. People are bailing in record numbers from upstate. Now the people with money are bailing from downstate.
1 million have left during Cujo’s tenure.
Classic liberal run state.
Commentators only miss this because they want to.
Lizzie Warren must love this.
Really? Then why are they even crying? They lost something they never even had in the first place then.
"The Democrats are all for taxing the rich. Just not their rich."
The state is crying because of their tax and spend policy.
They complain about state tax deduction against federal tax, but they don’t allow a deduction of federal tax against state tax.
Another method for making red states purple or blue.
Yeah, what are they complaining about?
Oh yeah, children and the mentally ill are always bitching about sumthin
You people are all missing the point.
This is all a carefully planned operation by the leftist politicians. The people they are driving out are going to places like Florida and Texas and then voting Democrat.
Colorado has been turned into a liberal Mecca. Florida is getting very close. Idaho is also. Expat Californians are destroying the West.
Seriously, I don’t think it’s carefully planned but it’s working exactly that way. They are driving people out and those people are ruining the states they go to
Glad I live in a state without an income tax.
Unfortunately it is drawing the refugees from over taxed states who want to do things like what they’ve just escaped from.
Well that's always the conundrum, you can't tax the poor.
You may be correct on people vacating that held real money, but it really accelerates states with financial issues into a corner, and makes it more likely that they bankrupt themselves within the next five to eight years (unless they cut their budgets).
Not to defend New York, but surely this lying with statistics. If I earn $2M in Texas and pay $71,113 in taxes, but earn $20M in New York and pay $502,191 it's not a fair comparison.
And surely not even in New York does someone earning $1M pay $502
Ever wonder why Rush Limbaugh left NY for Florida? There ya go.
Plus he can play golf year round. :)
That’s an excellent point. Average millionaire in NY vs avg millionaire in TX is not a fair comparison without knowing how many dollars are used in the calculations.
Without knowing the methodology used to arrive at these numbers, they are worthless. common sense tells us that a person with a lot of money and higher income is going to benefit from being in Texas over New York. But beyond that.......
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