Escape From New York
GrayRiderCourtesy of The New York Post and The BL Rag
Reminiscent of the title of the 1981 futuristic action flick starring Kurt Russell, where NYC is closed off and turned into a maximum security prison, residents are fleeing New York S
tate in record numbers. Unlike the convicts in the movie, this real life scenario consists of citizens escaping the bondage of some of the highest tax rates in the nation. 1.1 million of them to date.
A few weeks ago, I wrote a report on millionaires leaving NY because of high taxes, but it now seems that average New Yorkers are feeling the bite of the tax man and are busting out. The results... lower tax revenues for the state.
The average Manhattan taxpayer who left the state earned $93,264 a year. The average newcomer to Manhattan earned only $72,726.
That's a difference of $20,538, the highest for any county in the state. Staten Island was second, with a $20,066 difference.
When the Obama Administration recently announced that they would cut the pay of executives of corporations that took 'bail out' money, New York Governor David Paterson was incensed. Most, if not all of those executives are New York residents and when their compensation is dramatically cut, their tax bills will be significantly reduced.
It all adds up to staggering loss in taxable income. During 2006-2007, the "migration flow" out of New York to other states amounted to a loss of $4.3 billion.
Although New York's loss, Florida and New Jersey have profited by the biggest out of state migration in the country, with most escapees settling in the Sunshine State and the Garden State.
View Printer Friendly Version
Email Article to Friend
Reader Comments (6)
I'm a little confused. Your earlier report talked about how the net taxes in NY increased for the richest taxpayers because the state pulled deductions that they once enjoyed, but this comparison of 2008 state tax rates says that (before the deductions were pulled in NY, I presume) NJ's top bracket was a full 2% higher than was NY's.
If NY millionaires really are leaving for NJ, with its 8.97% top bracket income tax, what deductions did NY kill off that accounted for 2% of their income?
I'm not arguing at all - just trying to understand...
I didn't mention NJ in the millionaire article. This article, with the Post link, indicates that those making an average of $93,264 annually are leaving.
In fact, the story from the link in the millionaire article says this:
I was referring to this article, specifically your closing above:
I can understand Florida (no personal income tax), but NJ?Taken from the Post article, I would assume that NJ has a lower tax burden for those making under $100K, but higher rates for upper income people.
If a New Yorker could pay less tax in neighboring NJ yet stay close to friends, family and contacts in NY makes sense.
True enough - and, contrary to popular belief, there are some nice areas in the Garden State.
Well i think this is interesting, i liked this blog. I m gonna share it my friends and ask them to visit this blog to read ti.
r4 dsi