Residents are fleeing the Empire State and the Big Apple in droves – and taxes could be about to get even higher for those who remain.
From 2010 to 2017, New York lost 1,022,071 residents due to outward migration, and is consistently the #1 state when it comes to the number of people leaving. Even NYC’s population, which bucked that trend for the first half of the decade has begun falling. From 2017-2018 it fell 0.47%, which may appear minor, but was the largest drop in any metro area during that period. While the population was projected to grow by 7,000, it actually declined by 38,000.
The exodus accelerated from 2018-2019, with the city losing over 53,000 people, and nearly half a million have left during the pandemic and don’t seem to be coming back.
And now it’s looking like they’ll have yet another reason not to.
According to Fox Business:
New York Gov. Andrew Cuomo indicated this week that tax hikes on New York City’s wealthiest residents were possible, if better relief options fail to pan out.
“We have a deficit. We don’t just have an economic deficit – we have a combination of factors that are hurting New York City,” Cuomo said during a press briefing on Tuesday. “Before you talk about tax increases in New York City or New York State, let’s first focus on the better options.”
Whenever a Democrat pitches new taxes by claiming they’ll only apply to “the wealthy” you have to take the claim with a grain (or pound) of salt.
The three-term Democratic governor has been resistant to raise taxes on the wealthy, many of whom he acknowledged have left Manhattan during the pandemic. A tax hike could mean some of these individuals will not return.
New York City Mayor Bill de Blasio has less sympathy for Manhattan’s wealthy residents, saying he doesn’t base policies on “the wealthy few.” He has voiced support for increasing rates on the rich.
Taxes are already high in the state. New York has:
- The 7th highest gas tax at 45.9 cents per gallon.
- The 22nd highest liquor tax at $6.44 per gallon of spirits.
- The 10th highest state sales tax at 8.52%, and the fourth highest average local sales tax rate at 4.52%.
- The 4th highest property taxes at $2,782 per capita.
Income tax rates range from 4% on income below $8,501 to 8.82% on income above $1,077,550 (as of 2020), and total income taxes paid per-person are up over 50% since 2010 alone. And that’s just the state – NYC ranks first when it comes to local tax burdens in the U.S.