De Blasio’s NY: I Thought You Left?
“You don’t want to penalize high earners. Once they leave, who are you going to get to replace them?” “Other high earners?” was my usual reply to that statement which was associated with someone’s fear of a De Blasio Administration eagerness to tax away his or her’s earnings. Well, we are well into the De Blasio Administration, have those high earners emancipated themselves from the taxes you would think were King George circa 1776 reincarnate?
I Thought You Left?
The rich have gone nowhere. A report from the Independent Budget Office examines the New Yorkers who left the city in 2008 and 2012, and found that in the latter year, nearly 42% of households making more than $500K/year moved somewhere else in New York. New Jersey was second with 22% of high income households moving there in 2012.
Both New York and New Jersey have tax rates of 8.97 percent for incomes over $500,000. “High-income New Yorkers were no more or less likely to move than other households in 2012,” the report states. “The share of high-income households that moved, 1.8 percent, was just equal to the share of city households with high incomes.”
According to the IRS and New York’s IBO, Manhattan alone has more people that earn one million dollars or more per year than every single state except for New York, California and Texas at 19,800. Manhattan has more people that earn one million dollars or more per year than the entire United Kingdom. This means roughly 1 in every 25 people walking around Manhattan is a millionaire. De Blasio, similar to Obama, has done a terrible job of administrating as the socialist he has been claimed to be.
Taxes Are Not Enough
The fact is, very, very low taxes are not going to attract rich conservative people from New York and California who supposedly hate paying high taxes to Wyoming, Alabama or Mississippa’. These states don’t even register on rich New Yorkers’ radar. People mostly move upstate or to Long Island, to neighboring high-tax states (Connecticut was the third place they moved to), Florida (which poor and middle-class people have always moved to retire and for the weather) or to similarly high-tax California.
Even tax hating megaphones stay here when they can move anywhere. The Koch Theater is still in Lincoln Center. Fox News Headquarters is on 6th Avenue. Why are they not in Tennessee or Idaho? The fact is, very, very low business taxes and low cost of living will not attract major companies to relocate to Louisiana or Kansas. Low cost of living is important mostly to people who work for Walmart and McDonald’s, not Google and Apple. If corporations want to reduce their tax burden, they invert and headquarter overseas. They don’t need to go to Kentucky.
When rich people do move to low tax states, it’s to the one liberal dot in a sea of conservatism. Obvious examples that come to mind are Atlanta, Georgia and Austin, Texas. The cries of high “taxes” ring very hollow when looking at where those making $500,000 or more reside and do business.