Taxes Bite

For John, BLUF:  Taxes fund government, but also create social change.  In New York State, high taxes encourage people to emigrate to other states.  Nothing to see here; just move along.

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Cuomo announces income tax revenues have dropped by $2.3B

From The New York Post, by Reporter Carl Campanile, 4 February 2019.

Here is the lede plus one:

Gov. Andrew Cuomo announced Monday that state income tax revenues plummeted by $2.3 billion since he introduced his new budget plan last month — a bombshell that will force him to curb spending.

Cuomo attributed the revenue drop in December and January largely to the new federal tax code, as well as volatility in the stock market and other uncertainties.

“That’s a $2.3 billion drop in revenues.  That’s as serious as a heart attack.  This is worse than we had anticipated,” the governor said in Albany.

“This reduction must be addressed in this year’s budget.”

The New York Governor attributed this drop in revenue, in part, to the change in Federal tax laws, which caps the federal deduction for state and local taxes (SALT) at $10,000.

People being the way they are, when state taxes became too high, they moved.  Is Governor Cuomo surprised by this?

Of course some may be leaving New York State because it is slowly turning into 1930s Germany.

Hat tip to the InstaPundit.

Regards  —  Cliff