Why would anyone in their right mind move there a more if they didn’t have to do so.
City + state tax of almost 17% that they can no longer pass along through federal tax deductions onto the shoulders of the rest of america’s taxpayers.
Someone has to pay for the massively growing dependent population (gee, where could they be coming from?)
While NYC lost about 50k in population this past year, the % of those that were wealthy and thus the tax base loss was far higher. Now, factor in losing the Google business and the subsequent businesses who are concerned about a Hostile business environment or one that you can never safely escape, and NYC has a real proble.
Link: https://www.forbes.com/sites/greatspeculations/2013/09/17/not-easy-for-new-yorkers-to-escape-the-big-apples-tax-bite/#643002dbd475
So I guess using Lehigh's logic the tax rates are too low.
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almost as hard to undo this a Obamacare since whatever fix is proposed will have to go through both branches of congress and to the president for a signature. Imagine the compromises in the meantime - if they can ever get any agreement to begin with.
We are collecting record amounts of taxes. The problem is spending. Why didn't the Republican Congress cut spending? Why doesn't Cuomo cut spending?
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I read these articles, believe them and wonder if NYC is heading for a real socio-economic split, rich v poor. I go to NYC at least once a year and marvel at the number of building cranes in use, big cranes working on large residential buildings which will sell or rent for enormous amounts. Is the city going to be an island of wealthy?
One of my kids and a number of friends lived in NYC after college-it was the thing to do. But, they all came home and began families here and never regret it. Money was a large issue in making the move. Plus, they missed their parents of course.
likely will be moving to some big city soon for his first job. One has to have an exit strategy (or a "never enter strategy").
You know, for taxes.
but you also ignoring the problem.
Except, I admit that New Orleans after a storm may not lack that.
Right now the City controls everything that happens in the state on a local and federal level. There interests are radically different... as they are between coastal and inland regions of California. Those who are pushing for using the popular vote to elect a President are primarily from densely populated urban areas of the country, where the agenda is totally different from that in the heartland. Letting the cities run the country would quickly turn us into Venezuela.
People will look back upon the 17% tally as the "good old days" once that bill comes due.
A guy making $1,000,000 in NYC is still paying far more federal tax than 99% of Alabamans.
I understand that the guy in NYC was still paying the same overall taxes since they used to be going to their local benefit in city and state taxes instead because of the deduction. But now, they are required to pay the same fed taxes as those folks in Alabama and on top of that still have their city and state taxes to pay on top of that.
As I see it, the irresponsible taxation of NYC and other large blue cities/states had previously been passed on to the general US population because we saw less fed taxes from them via those SALT deductions so that this money could fund their wasteful or extravagant programs.
Are you simply arguing that people in NYC make more on average than Al and therefore they are paying as much into the pot? This is not apples to apples. The same income in one state should be compared to the same income in another on Fed taxes, should it not?
The benefits that the NYC enjoy for their high local taxes should be paid by those same people that approved those rates and enjoy their benefits, should they not?
And finally, cannot many of these wealthy and their businesses not make the same amount or more elsewhere in this age of the internet without NYC at all? The “special nature” of all big cities is diminishing with the expansion of the internet and its commerce.
I acknowledge your professional expertise in this area, and I like to argue, but I am actually asking what you think.
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And I dislike big cities. Give me less congestion.
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Maybe the Alabama millionaire was actually paying less in federal tax than the NYC guy. Is the Alabama guy "passing" his tax burden onto other Americans because he has a big mortgage, and/or because he gives to charity?
I suppose you could look at it that way. But then treat all the inequities in the same way.
The bottom line is that the rules are the same for everybody. If the Alabama guy wanted to take advantage of the NYC SALT deduction, he could have moved to NYC. If the NYC guy wanted to take advantage of the 501(c)(3) deductions, he could have donated more to his church.
Now the rules have changed. I suppose that's fine, but doing so almost without any warning, and without any clear policy reason, is a little bit of bullshit. Lot's of Jersey people I know in that upper middle class income level are getting socked. They weren't told this was coming when they bought their house, started their jobs, and had their kids.
In any event, fair or not, the NYC millionaire was not passing his tax burden to other people. He was paying more tax, but it was split between the feds and the states differently.
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Falsehood is probably too strong. I just find that particular characterization from your original post to be misleading and over simplistic. There are lots of deductions that different people choose to take advantage of. SALT was just one of many.