New York Likely to Hike Taxes on Top Earners to Highest in the Nation
Another catalyst is set to keep fueling the escape from New York that has accelerated in the pandemic era.
The number of citizens leaving New York is at its highest rate since NYC’s pre-Giuliani crime wave. From 2010 to 2017, New York lost 1,022,071 residents, a negative 5.27% change in internal migration. Total population grew only 0.4% from 2010-2019, a time when the national population grew 16%. In NYC specifically, by 2019, NYC’s population was only 2% larger than it was in 2010.
During the early months of the pandemic nearly half a million people left the city, though we don’t know for some time how many left for good. Even immigrants are avoiding the city – international immigration fell nearly in half since its peak in 2016 (far out of proportion with the decline in legal immigration under President Trump). Statewide, New York was the #1 loser of residents in 2020 (followed by the liberal havens of Illinois, California, and Michigan).
And now New Yorkers, particularly the state’s highest earners, have yet another reason to leave; even higher taxes on the horizon.
As the New York Post reports:
Legislators and Gov. Andrew Cuomo over the weekend ironed out the final terms of the Empire State’s mammoth $200 billion spending proposal.
The proposal would make New York City’s wealthiest pay the highest combined state and income tax in the country.
The proposed tax hikes are as follows:
- Big Apple millionaires would face a combined local tax rate of between 13.5 percent and 14.8 percent. The Golden State already holds the title for highest top income tax rate in the nation, 13.3 percent income over $1 million.
- Single filers reporting more than $1 million of income and joint filers reporting more than $2 million would see their income tax rate spike from 8.82 percent to 9.65 percent.
- Two new tax brackets would be created: one in which income over $5 million would be taxed at 10.3 percent and the other where income over $25 million would be taxed at 10.9 percent.
- The state’s corporate franchise tax would also rise to 7.25 percent from 6.5 percent through 2023.
While the tax hikes target higher earners, this will encourage some of those high earners to leave the state, leaving everyone else to make up for the lost revenue.
Matt Palumbo is the author of Dumb and Dumber: How Cuomo and de Blasio Ruined New York, Debunk This: Shattering Liberal Lies, and Spygate
Don’t miss The Dan Bongino Show