Even a few Democrats grasp the consequences of high taxes

New York Gov. Andrew Cuomo says his state has a $2.3 billion budget deficit, and he blames the revenue shortfall on changes in federal income tax law that limits the amount of state and local taxes that may be deducted, according to North Country Public Radio.

Cuomo and other Democrats from high tax states would like the law repealed, but, as we told you earlier, that would be unfair to low tax states like Nevada. Nevadans — along with residents of New Hampshire, Florida, Wyoming, Texas, South Dakota and Alaska — used to be able to deduct about 1 percent or less of their adjusted gross income, while those who live in New York, Maryland, D.C. and California could deduct more than 5 percent. This means Nevadans bear a proportionately higher federal tax burden than New Yorkers.

The radio station notes that many Democrats in the New York Legislature raising the taxes of the state’s richest residents, but Cuomo seems to have finally realized what happens when you do that.

“This is the flip side,” Cuomo said. “Tax the rich, tax the rich, tax the rich. The rich leave, and now what do you do?”

As we explained less than a month ago, this is called voting with your feet, and it is not a new phenomenon.

In an article in The Wall Street Journal in 2009 under the headline, “Soak the Rich, Lose the Rich,” economist Arthur Laffer and WSJ economics writer Stephen Moore updated previous studies and found that from 1998 to 2007, more than 1,100 people every day of the year relocated from the nine highest income-tax states — such as California, New Jersey, New York and Ohio — mostly to the nine tax-haven states with no income tax — including Florida, Nevada, New Hampshire and Texas.

Laffer and Moore determined that over that period of time the no-income tax states created 89 percent more jobs and had 32 percent faster personal income growth than the high-tax states.

Even a blind hog finds an acorn every now and then, Mr. Cuomo.

New York Gov. Andrew Cuomo delivers budget address.

 

7 comments on “Even a few Democrats grasp the consequences of high taxes

  1. Bruce Feher says:

    Now if there was some way to get the low information voters that are always suduced by the left’s baloney then maybe things will change but, I don’t have much hope!

  2. Deleted says:

    And strong majorities (65%) of even republicans understand why getting the wealthy to finally pay their far share is a pretty good idea.

    If they don’t like it, maybe they can move to low tax Somalia?

    https://thehill.com/hilltv/what-americas-thinking/428747-new-poll-americans-overwhelmingly-support-taxing-the-wealth-of

  3. Steve says:

    Item 3 in his powerpoint slide:
    “Rather than tax on income received by employee, tax wages paid by employers”

    Well, not only are his wealthy leaving, now he’s going to ensure all the remaining middle class residents of New York get reduced (if any at all) wage increases.
    Oh well, New York has a big population, they can afford to lose more people, right?

  4. Rincon says:

    Amazing! New York has 19.5 million people, while Nevada’s has 3 million and Steve’s crowing about Nevada being a more attractive place to live because of taxes.

    92% of New York’s income comes from income and sales tax, while almost 80% of Nevada’s income comes from sales tax. I believe both were previously tax deductible, and neither is now (over 10 grand). The difference isn’t so great.

  5. Steve says:

    “Steve’s crowing about Nevada being a more attractive place to live because of taxes.”

    I never made any such statement, Rincon.

    Stop reading stuff that isn’t there.

    Though, I have been living in Nevada for 40 years, moved here from Massachusetts….and Sally, my wife has been here for 50 years…she moved here from California…but she preferred Alaska.

    Hmm. Anecdotal? Yes. But we certainly did vote with our feet.

    And you really can’t include NYC in the State of New York’s population. NYC is a country in it’s own right and it’s residents pay 3 income taxes.

  6. Rincon says:

    You are correct, Steve, in that you never mentioned Nevada in comparison to New York, only that, “Oh well, New York has a big population, they can afford to lose more people, right?”

  7. Steve says:

    Which you then, inadvertently, confirmed.
    They7 might as well chase away their middle class workers. They don’t like them anyway.

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