Progressives in Albany are pushing another huge state tax hike this year, but New York’s brutal tax rates are already driving taxpayers (and job creators) away and steadily eroding the tax base. I don’t even care about that.
Both the state Senate and Assembly included a significant $2.2 billion increase in their responses to Governor Hochul’s budget proposal, in the process of finalizing the budget by the end of the month.
Taxpayers with incomes over $5 million will face a 0.5 percentage point increase, bringing the top tax rate to 11.4% and a whopping 15.3% for the city. federal government Income tax rate, 37%.
Progress will also raise corporate taxes.
This means that, as the Citizens’ Budget Committee recently reported, New York and the region already It leads the nation in taxes, paying more per capita in taxes than any other state (63% more than the national average).
Progs don’t care. All that matters is ideology.
Let me tell you, the Empire State was bleeding taxpayers long before COVID-19 accelerated the exodus. And the geniuses in Congress responded by raising taxes even more in 2021, by $4.3 billion.
Last year, the brain trust and Governor Hochul decided on the tax. still The amount wasn’t enough, so they raised another $1.1 billion.
Albany refuses to acknowledge the connection between heavy luggage and the madness of New Yorkers headed for the exits.
In just three years, from July 2020 to July 2023, the state’s population declined by more than 533,000 people, despite growth nationwide, State Auditor Tom DiNapoli reported.
He pointed out that this “directly” led to huge losses in tax revenue.
In Albany, personal income tax collections fell by nearly $11 billion, or 15%, last year, from $70.1 billion to $59.3 billion.
High-income taxpayers account for a disproportionate share of revenue. Of course, they’re the people lawmakers slammed the most in 2021, and they’re looking to pull their socks up again this year — and they’re part of a growing rush to flee New York. .
EJ McMahon of the Empire Center testified last year that “overseas migration among New Yorkers earning more than $25 million increased from 6% to 8% in 2021.” That was “the same year that New York state taxes were raised by 24%.”
He called this a “red flag that Congress should be aware of.”
Similarly, the CBC warns that the Legislature’s hike “will weaken New York State’s already precarious competitive position.”
Hochul To tell The tax increase is a “nonstarter.” However, she has fallen to Congress before.
If she can’t stick to her beliefs this time, the rush to the outside will be even bigger.
