Those outflows stem from both people and businesses leaving the state. According to the American Legislative Exchange Council, New York’s top combined state and local business tax rate of 17.2 percent is the worst in the nation.
Gov. Andrew Cuomo recently complained that the cap on the SALT (state and local tax) deduction is causing people to flee New York. That’s 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.
It’s 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 York’s population fell by 1.9 million from 2005 to 2016. Rather, if anything, it would be the state’s high taxes.
At $6,993 per taxpayer, New York’s 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 America’s 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.
It’s 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.
Read more at nypost.com ...
Gov. Andrew Cuomo recently complained that the cap on the SALT (state and local tax) deduction is causing people to flee New York. That’s 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.
It’s 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 York’s population fell by 1.9 million from 2005 to 2016. Rather, if anything, it would be the state’s high taxes.
At $6,993 per taxpayer, New York’s 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 America’s 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.
It’s 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.
Read more at nypost.com ...
