dust1990 t1_j9urrij wrote
The Tax Rate Is Too Damn High
https://www.tax.ny.gov/data/stats/tax-facts.htm#expanded-content-menu2
They overtaxed the Golden Goose (aka the wealthy). So they're slowly leaving.
WickhamAkimbo t1_j9v8fbp wrote
I'm pretty much anti-progressive and have been taxed at some of the higher brackets in the city, and I don't think the high tax rate is really to blame. I think pandemic shutdowns and fear of getting sick drove a sort of self-sustaining exodus out of the city. I also think it's likely temporary, though it could take years to reverse. The city is just too powerful and attractive culturally, with San Francisco and LA coming in a distant second. People saw an opportunity to get a break from the overcrowding and the rat race here, but there's really no comparison to New York culture in North America, _especially_ at the very top end of luxury and wealth. NYC only has a couple of competitors globally for that kind of culture.
dust1990 t1_j9va7sm wrote
I agree with that. But the wealthy can afford to live here up to 182 days per year without having to pay a cent in income tax. Lower the rates so they're not incentivized to do that domicile dance and you likely could make them a full-time, income tax paying resident spending money in the city.
WickhamAkimbo t1_j9vffqe wrote
Probably makes more sense to just change the law to tax them on a prorated basis based on residency, with maybe a 2-month minimum required for tax purposes. Again, they want to be here for cultural and economic reasons. The advantage is in the city's favor and the rates seem reasonable given that. A short-term tax break could help lure some of these people back faster though.
dust1990 t1_j9vlyyl wrote
That would likely get struck down as unconstitutional. It would raise a host of issues: due process, privileges & immunities, equal protection, commerce clause.
b1argg t1_j9v9xf8 wrote
the brackets aren't very different either. The middle class gets soaked.
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