The NYTimes ran an article yesterday talking about the curious population shift from NY to FL. The biggest thing missing from the article’s conclusions, however, is the affect of taxes on New York’s population (re)location.
A CNSnews report last year discussed a study by the Tax Foundation found a net loss of 1.3 million New Yorkers who left the state over the 10 year period from 2000-2010.
3.4 million total moved out of state, but another 2.1 moved in, so the change was -1.3 million — which totaled a loss of $45.6 billion in income.
Although many factors determine one’s decision to move to or from a locality, taxes are typically part of the process. As such, the Tax Foundation noted many high tax facts that are unique to New York:
According to the group, New York ranked second among the states for the highest state and local tax burden in 2009. The Empire State was ranked highest for tax burden every year from 1977 until 2006, except in 1984 when it was ranked second.
New York State has a progressive personal income tax rate ranging from 6.45 percent to 8.82 percent for those earning over $2 million. Sales varies by county, and is between seven and eight percent. In Manhattan, the sales tax is 8.875 percent.
According to the Retirement Living Center, which examines tax burdens by state for those nearing retirement, New York also levies a gasoline tax at 49.0 cents per gallon and a cigarette tax of $4.35 per pack, along with an additional $1.50 per pack in New York City.
New York is also one of 17 states plus the District of Columbia that collects an estate tax, with a $1 million exemption and a progressive rate from 0.8 percent to 16 percent.
In 2007, New York State collected $1.1 billion from its estate and gift taxes, the highest of any of the states, according to the Tax Foundation.
I have mentioned these points before. Back in 2009, Rush Limbaugh fled the state due to the crushing taxes. And an Op-Ed in the NY Post last year discussed the implications of a shrinking population — loss of revenue, House of Representative seats, and policy power.
High taxes have devastating consequences. Thomas Sowell once quipped, “Elections should be held on April 16th- the day after we pay our income taxes. That is one of the few things that might discourage politicians from being big spenders”.
With the recent election of De Blasio as Mayor of NYC, you can expect even more flight. De Blasio has vowed to raise taxes both as a means of pushing his economic equality agenda and rewarding the unions for the patience with contract negotiations over the last 4+ years.
The state of NY is on the brink of fiscal insolvency and more and more people are waking up to that reality — and leaving the state in droves.