Thursday, November 05, 2009
Middle Class New Yorkers Fleeing State - WSJ.com
When taxes drive people away, government's tax income decreases, and those that are left are likely to be asked to make up the difference with more and higher taxes.
Is that so hard to understand?
It sounds like a disastrous spiral to me...
Is that so hard to understand?
It sounds like a disastrous spiral to me...
In this Wall Street Journal article the consequences of high taxes are discussed:
"Between 2000 and 2008, the Empire State had a net domestic outflow of more than 1.5 million, the biggest exodus of any state, with most hailing from New York City. The departures also have perilous budget consequences, since they tend to include residents who are better off than those arriving. Statewide, departing families have income levels 13% higher than those moving in, while in New York County (home of Manhattan) the differential was even more severe. Those moving elsewhere had an average income of $93,264, some 28% higher than the $72,726 earned by those coming in.
In 2006 alone, that swap meant the state lost $4.3 billion in taxpayer income. Add that up from 2001 through 2008, and it translates into annual net income losses somewhere near $30 billion."
