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Yes, but its not like the redistributing is badly skewed that it "kills the golden goose". Most of the irregularities come from the fact that majority of gov spending is defense, and defense is more guided by geography and other considerations, so some states getting more funding is natural. Majority of national park system is also out West, so is the majority of federally owned land. In fact, in a lot of government programs the costs are up because Congress goes out of their way to disperse the funds to various remote congressional districts. Just a simple example is NASA. They are greatly harmed by the fact that NASA centers are all over the place and one single program gets redistributed across the whole country. Ideally, they want to be located in the South (Texas and Florida), close to the equator, and near Silicon Valley in California (Ames), and a small research outpost in Alaska.
Killing the golden goose isn't just the disproportionate federal spending/revenue ratio, but doing that while minimizing SALT which was a primary mechanism to try to equalize things somewhat. That's the major problem here. It's hard to tell how hard this is going to hit and of course everything adjusts to a new equilibrium, but minimizing one without anything to compensate for that mechanism isn't great. I don't think it'll be disastrous and won't kill the goose but just sort of hobble it for a bit.
Defense spending is a major part of the budget but not anywhere close to the majority. Doesn't mean it can't be a bit more efficient. The West includes both net takers and givers and California is also a massive net giver. The other Western states, especially away from the coasts, often don't have very large populations and the federally owned land isn't exactly under heavy monitoring and stewardship. It's a combination of a lot of things including federal social welfare programs for more impoverished states that makes the balance screwy.
Killing the golden goose isn't just the disproportionate federal spending/revenue ratio, but doing that while minimizing SALT which was a primary mechanism to try to equalize things somewhat. That's the major problem here. It's hard to tell how hard this is going to hit and of course everything adjusts to a new equilibrium, but minimizing one without anything to compensate for that mechanism isn't great. I don't think it'll be disastrous and won't kill the goose but just sort of hobble it for a bit.
Defense spending is a major part of the budget but not anywhere close to the majority. Doesn't mean it can't be a bit more efficient. The West includes both net takers and givers and California is also a massive net giver. The other Western states, especially away from the coasts, often don't have very large populations and the federally owned land isn't exactly under heavy monitoring and stewardship. It's a combination of a lot of things including federal social welfare programs for more impoverished states that makes the balance screwy.
SALT and equalization of federal government spending distribution are not correlated 1-to-1. SALT has to do with local taxes.
There were states that did not benefit from SALT AND were net contributors, like Washington state or Texas or Minnesota.
Today Cuomo was scheduled to travel to DC to visit Trump at the White House and on bended knee begging the Alfather to remove the SALT cap. Does Cuomo really think Trump owes him any favors after he has treated him so horribly the past 3-4 years? This is the perfect opportunity for a TRUMP TO NY: DROP DEAD! moment and I hope it happens. These two clowns Cuomo and deBlasio continue to try and out "progress" each other and it's put the middle class to upper class New Yorker looking at other alternatives. This state needs spending and tax reform and a new political direction that will encourage small and large business development
funny, when the tax law passed Cuomo got on his soapbox and promised NY property owners they would be made whole by his majesty, Super Mario. Looks like he ran out of wealthy taxpayers to fund those tax breaks especially after his colossal spending spree which among other things involved building an overpriced bridge in honor of his own father. Shameless
funny, when the tax law passed Cuomo got on his soapbox and promised NY property owners they would be made whole by his majesty, Super Mario. Looks like he ran out of wealthy taxpayers to fund those tax breaks especially after his colossal spending spree which among other things involved building an overpriced bridge in honor of his own father. Shameless
Infrastructure spending is a small part of the budget (both NYS and NYC). Majority of the money is in social programs spending.
The fat lady is about to sing. The party is over. Suddenly Cuomo realizes he needs the Rich to live in NYS.
This is a direct result of the Trump Tax plan and it is having the desired effect. Perhaps now these state and city officals will finally realize they can not spend endlessly and depend on an income tax base that is fleeing, and continuing to raise taxes at any level won't bring them any more money, in fact it will have the opposite effect. This is our Detriot moment. What happens in the next 18 to 24 months will determine the long term fate of this state.
Its not that he rich are leaving NYS. The ones who are leaving are the middle class who are also over taxed and increasingly cannot afford to live here.
The rich have the ability to shift their incomes wherever they wish as they have smart CPAs and attorneys to help them. They easily outsmart the civil servants sent to spy on their antics.
If ANY hedge fund operator paid $300,000,000 tax to any one state EVER, I will eat his socks.
They don't have to. They show their income in FL or DE and leave NY alone. So much for thinking that civil servants can outsmart the rich.
The progressives can rail that the rich don't "pay their share of taxes" as much as they wish. The Feds might be able to squeeze them but local jurisdictions can be played and income shows up where the local tax environment is most favorable.
The poorest of the poor here would have to be homeless people. They should thank you for speaking for them. Wow, it must suck to be middle class in places like India and Venezuela.
NYC weathered the post WWII decline better than most cities because it had a critical mass of wealthy that stayed in the city (Manhattan, BK Heights) while the middle and working class white population fled. If the wealthy go away, then if/when the next downturn comes, there won't be that cushion.
What folks have to understand is that in these days of assorted corporations with the wealthy depending more in returns on assets than they do on salaries they can show their incomes in locations where tax rates are lowest. They can enjoy all that Park Avenue in the 60s offers and yet have most of their income show up in FL in some non transparent corporate vehicle which is not a NY "resident".
Progressives really need to learn that the FDR era ended and the high tax era of the 50s to the 70s led to loads of tax lop holes and since then the rich have become even more tricky.
The poor souls who get stuck with the tax bills are those in the $300k HH income range, which in NYS can be ordinary professionals. They are stuck with SALT and many will have to leave the state given that their Fed tax bill just went up given that they now have fewer deductions. Many have just learned how much they now owe the IRS.
Its not that he rich are leaving NYS. The ones who are leaving are the middle class who are also over taxed and increasingly cannot afford to live here.
The rich have the ability to shift their incomes wherever they wish as they have smart CPAs and attorneys to help them. They easily outsmart the civil servants sent to spy on their antics.
Both groups are leaving.
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