Posted on 03/10/2019 2:48:51 PM PDT by SeekAndFind
The rich are fleeing high-tax New York but are being pursued by tax authorities who are going after every penny possible.
The state is in the midst of a $2 billion budget crisis and even those who are trying to leave find themselves the subject of intrusive audits.
The aggressive approach by state tax collectors comes as the Empire State faces a $2.3 billion budget deficit that even Democratic Gov. Andrew Cuomo called “as serious as a heart attack.”
Cuomo, a vocal critic of President Trump, blamed congressional Republicans for passing tax reforms that reduced the state and local tax deduction Americans can take on their annual income tax forms -- meaning residents of high-tax blue states like New York have been feeling the pinch, sparking their exodus.
“This is the flip side. Tax the rich, tax the rich, tax the rich,” Cuomo said last month. “We did. Now, God forbid, the rich leave.”
I find it difficult to process the governor's ignorance. Is he really that clueless? When you raise taxes on the rich, the rich leave. Is that really so hard to fathom?
But New York state auditors are doing their best to ensure that those fleeing the state’s high taxes will face difficulties, including being subjected to an audit -- likely to be followed by a massive tax bill.
New York conducted 3,000 “nonresidency” audits between 2010 and 2017, recouping around $1 billion from the practice, CNBC reported.
Between 2015 and 2017, the auditors on average collected $144,270 per audit, with more than half of those who were audited losing their cases.
New York's success rate on audits can be attributed not only to the traditional methods of investigation
(Excerpt) Read more at americanthinker.com ...
This sort of thing is going to happen more often in high tax states like New York, California, and Illinois. When taxes become unbearably high and people vote with their feet by moving to a lower tax state, rather than a state receiving less income, audits will be ordered to glean every last nickel from tax deserters.
Maybe New York will be one of the first state to run out of other people’s money.
Sounds like those audits have a solid positive cash flow for the government so you can expect them to keep up or intensify.
Imagine that mentality running the whole country.
California, New York, and Chicago have reached a death spiral phase. “The rich” leave for a better life, because they can easily do so. Then , then next richest group becomes “the rich,” and they are forced to leave. Keep defining the rich down until no one can live there.
That’s because some of these people aren’t actually fleeing - they’re just establishing a dummy home in some other state. People who do actually flee, as in sell or rent their NY property, and live full-time elsewhere, don’t typically have these problems.
And then the problem gets worse because them they will do no work in NY.
Then the wall will finally get built, to keep people in.
“...residents of high-tax blue states like New York...”
You got yourselves there azzholes. Go bankrupt. Serves you right for electing and re-electing leftist, socialist, commie scum dirtbags and lowlifes.
I rejoice in your misery, except for the Good Americans upstate. Albanhy and NYC need nuking. No sympathy from me. I worked in Midtown Manhattan, lived in NJ, for 17yrs.
Rudy had it in good shape when he left. YOU destroyed it. Wallow in your misery, like a pig in mud.
Probably some place like Belize, which could benefit from the largess from a flood of billionaires.
Icing on the cake: it causes a clique of the ultra wealthy to suddenly become staunch advocates of nationalism.
I think the problem with Cuomo’s approach is that it will alienate some of these tax refugees to the point that they will invest their money mainly in the states where their ersatz new homes are located. If they start to consider these other states their homes, NY will really have lost their investment capital. In fixing NY state’s current fiscal problems, he will have created long-term problems for future governors, who will have an investment void once filled by these tax refugees.
Maybe New York will be one of the first state to run out of other people’s money.
*************
Looks like it might be a photo finish with Illinois.
Illinois made people who left in the first half of 2017 pay a 4% income tax.
Residents paid 3%.
‘“This is the flip side. Tax the rich, tax the rich, tax the rich,” Cuomo said last month. “We did. Now, God forbid, the rich leave.”’
A clue for the clueless. Of course this won’t happen if the tax hungry Democrats cheat their way into the House, Senate and Presidency in 2020.
I seem to remember Rush being hounded about taxes by NY State for YEARS once he’d had enough and moved all of his operations to Florida.
Then the wall will finally get built, to keep people in.
*************
LOL. How true.
If Hispanics vote in large numbers for Trump in 2020 the biggest wall you will ever see will be immediately built. The Democrats will demand it. They will seal off the borders before you can say El Paso.
Or no one can leave there.
-PJ
The urbanites want to live in big metropolis but don't want to pay for all the public amenities that make living in compact, cheek to jowl housing possible.
So they keep the huge apartments in, say New York but claim their residency in Podunk, Florida.
This way liberals can self righteously claim He/she voted for XXX when in fact they shelter their income by a low/no income state as their resident state.
.
Sorry but the State SHOULD go after you.
You gotta pay the piper!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.