Posted on 05/04/2018 7:18:27 AM PDT by SeekAndFind
High-tax states face a choice: reduce taxes or lose taxpayers.
Stephen Moore and Art Laffer forecast in the Wall Street Journal the loss of 800,000 California and New York residents over the next three years. The exodus, the economics experts say, comes because of the tax bill, which limits the state and local tax (SALT) deduction to $10,000, passed in December. Previously, the feds forced no monetary limit on filers.
California taxes individuals earning $1 million or more at a rate of 13.3 percent. New York levies an 8.8 percent rate upon individuals making a similar amount of money annually. In the past, the federal government in effect incentivized higher taxes at the state level by allowing filers to write off state taxes. By limiting this deduction to $10,000, when millionaires theoretically pay more than ten times or more that amount in state income taxes,
Congress refuses to continue granting tax breaks for those least in need of them and to states effectively empowered to do so by the limitless nature of the SALT deduction in the past.
Along with California and New York, states such as Oregon, Iowa, Minnesota, Vermont, New Jersey, and Hawaii, which also boast income tax rates above eight percent, face a tax-hike flight. A certain percentage of their inhabitants, common sense dictates, find the prospect of surrendering tens or hundreds of thousands of dollars of income to their state governments intolerable, and move to states with less draconian rates.
In fact, something along these lines already occurs. Anyone with a cursory knowledge of the differences in the tax climate across states can compare Electoral College maps from, say, the 1950s onward to see the declining political power of New York and Massachusetts — long ridiculed as Taxachusetts — and the rise of Texas and Florida,
(Excerpt) Read more at spectator.org ...
NY varies big-time......I’m in western NY, my sibling is on Long Island. We have similar homes, about the same size in comparable neighbor hoods. My plot is a about twice as large. My real estate taxes are about $5,500 - theirs in about $25,000. On the other hand, my house could/would sell for about $240K, theirs about $750K.
The highest-paid taxpayers are unlikely to move. The jobs that pay high salaries are located in these states.
They’re within commuting distance of NYC, where you can work at an investment bank or a law firm. What kind of jobs can people get in western NY?
RE: The highest-paid taxpayers are unlikely to move. The jobs that pay high salaries are located in these states.
CA and NY are going to look more and more like third world countries... a few elites served by a huge mass of low skilled workers. The wage gap is going to be enormous.
Dims should be happy with Trump. They are always wanting to soak the rich, making them pay more taxes. Well, they are paying more now.
The highest-paid taxpayers are unlikely to move. The jobs that pay high salaries are located in these states.
...
And they can live well if they move to a lower tax state when they retire.
Banking jobs have been flowing out of NYC and San Francisco and into Charlotte for several years. A great many of these are 6 figure jobs.
Looking at the max, those over 1 million in income is informative but more important is those in the middle income area see the effect of the tax structure at its worse as the rates ramp up very quickly. It is not just soak the rich, it is drown the middle class too. For instance, single at 52K and one is at 8%.
It ‘s up to the GOP in those states to point out SALT should be making citizens in those state affected.By start taking a good hard look at where their tax money is going and asking themselves why.
It ‘s up to the GOP in those states to point out SALT should be making citizens in those state affected.By start taking a good hard look at where their tax money is going and asking themselves why.
You can keep a house in CA and spend six months each year. Then have your primary residence in tax free state. We have two couples we know doing that.
Thanks SeekAndFind. It's unlikely -- apart from the greedheads in the entertainment industry, here and there. But if they move out of La-La land, they'll have a much harder time hidiing their staffs of non-English-speaking illegal alien slaves.
I have a small horse ranch for sale in N Nevada. 5.58 acres. Ad in horsetrader.com. This year’s tax bill==$693.64 TOTAL.
It’s not just the rich getting screwed by NYS. Anyone with a nice house is, too, and that includes plenty of middle class folks who are paying in the high four to five figs in property taxes.
I don’t know any rich folks fleeing NYS.
But I know a lot of middle class ones...
NYS GOP is an acronymic oxymoron. People here still vote GOP in spite of the party, not because of it. Upstatehood is the only way Upstate has a prayer. But we’ll be bugging out before that could happen.
RE: and that includes plenty of middle class folks who are paying in the high four to five figs in property taxes.
Tell me about it, I live in Long Island and that’s what we get. Their rationale is that’s the price you pay for having good schools ( and I have to admit that Long Island schools are among the best in the nation ). 70% of our property taxes go to the school system.
But here’s the question -— Lower tax states also have just as good, if not better schools, how come they are able to manage without having to pay 5 figure property taxes?
RE: Upstatehood is the only way Upstate has a prayer. But we’ll be bugging out before that could happen.
Upstate New York can never outvote the city and the surrounding suburbs and THAT is the problem.
Exactly, NYS has high local school taxes and when people wake up that they are no longer deductible we can only hope the school tax growth reverses.
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