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AP) This year, New York's deep-pocketed rich were required to dig even deeper to help shore up state finances.
They now pay higher taxes on their income and on limousines and yachts, more to enter a horse in a race and more to dabble in real estate. Meanwhile, many are losing millions from the closing of business tax loopholes and those making over $1 million are losing tax deductions others get.
It even costs more to hunt foxes or pheasants and have their taxes prepared.
Now, a half-dozen states in this recession-driven movement are nervously eyeing New York to see if it's wise to demand so much from people rich enough to have a second home in less taxing states _ and for whom a change of address can be its own tax break.
Early data from New York show the higher tax rates for the wealthy have yielded lower-than-expected state wealth. Gov. David Paterson, who had always warned targeting the rich could backfire, fears that's just what happened.
Paterson said last week that revenues from the income tax increases and other taxes enacted in April are running about 20 percent less than anticipated.
The concern about millionaire flight has prompted some states, including New York, New Jersey and California, to increase the highest tax rates only temporarily. For New York, it's the second temporary increase for high earners since 2001.
Risky Business: States Tax The Rich At Their Peril - CBS News (http://www.cbsnews.com/stories/2009/09/27/ap/business/main5344938.shtml - broken link)
I moved from New York to Arizona (with my job) about 15 months ago. Arizona state income tax is just 10% of what I was paying in New York. I wouldn't blame a few millionaires from doing the same.
Sadly, I still think some people won't care as all they can see is the shortsighted "even playing field" and not the long term impact to the economy, society, and their job by ousting all of those with more money than them.
Paterson said last week that revenues from the income tax increases and other taxes enacted in April are running about 20 percent less than anticipated.
The solution? Tax'em some more.
Quote:
So far this year, half of about $1 billion in expected revenue from New York's 100 richest taxpayers is missing.
The more well-off people, particularly business owners, that leave NY, the better. It will be a great demonstration of what happens when socialism runs amuck.
I moved from New York to Arizona (with my job) about 15 months ago. Arizona state income tax is just 10% of what I was paying in New York. I wouldn't blame a few millionaires from doing the same.
This is flat out false. The New York State Income Tax is 6.85% maximum, and the Arizona State Income Tax maximum Rate is 4.54%. Even the lowest tax bracket in Arizona, 2.59%, is more then 10% of the highest taxed income bracket in New York City, which would be about 10.45%.
This is flat out false. The New York State Income Tax is 6.85% maximum, and the Arizona State Income Tax maximum Rate is 4.54%. Even the lowest tax bracket in Arizona, 2.59%, is more then 10% of the highest taxed income bracket in New York City, which would be about 10.45%.
Perhaps Arizona does not have a State AND City income tax like NY/NYC does?
Perhaps Arizona does not have a State AND City income tax like NY/NYC does?
The maximum tax someone in NYC could pay is 10.45% (3.648% for NYC and 6.85% NYS) for state and city income tax combined, the lowest possible tax someone in Arizona could pay is 2.59%. This is not 10% of 10.45%.
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