The state of New York is an economic disaster area.
- New York is ranked #50 in the Economic Freedom of North America.
- New York is ranked #48 in the State Business Tax Climate Index.
- New York is ranked #50 in the Freedom in the 50 States.
- New York is next-to-last in measures of inbound migration.
- New York is ranked #50 in the State Soft Tyranny Index.
The good news is that New York’s politicians seem to be aware of these rankings and are taking steps to change policy.
The bad news is that they apparently want to be in last place in every index, so they’re looking at a giant tax increase.
The Wall Street Journal opined on the potential tax increase yesterday:
[…] lawmakers in Albany should be shouting welcome home. Instead they’re eyeing big new tax increases that would give the state’s temporary refugees to Florida – or wherever – one more reason to stay away for good. […] Here are some of the proposals […] Impose graduated rates on millionaires, up to 11.85%. […] Since New York City has its own income tax, running to 3.88%, the combined rate would be […] a bigger bite than even California’s notorious 13.3% top tax, and don’t forget Uncle Sam’s 37% share. […] The squeeze is worse when you add the new taxes President Biden wants. A second factor: In 2017 the federal deduction for state and local taxes was capped at $10,000, so New Yorkers will now really feel the pinch. As E.J. McMahon of the Empire Center for Public Policy writes: “The financial incentive for high earners to move themselves and their businesses from New York to states with low or no income taxes has never—ever—been higher than it already is.”
Here are some more details from a story in the New York Times by Luis Ferré-Sadurní and Jesse McKinley: