Progressive Push for Tax Hikes Sparks Controversy
Tax Hike Alarm: Albany Progressives Risk Driving Away New Yorkers. (PHOTO: The Wall Street Journal)
Mounting Opposition to Tax Hikes Amid Economic Exodus
According to the New York Post, in Albany, New York, tensions rise as progressive lawmakers push for yet another substantial state tax hike despite the already burdensome tax rates driving taxpayers and job creators to flee the state. Both the state Senate and the Assembly have proposed hefty increases potentially amounting to $2.2 billion as part of their responses to Governor Hochul‘s budget plan. These proposed tax hikes would affect taxpayers earning more than $5 million, raising the top rate to 11.4% statewide and a staggering 15.3% in New York City, in addition to the federal income tax rate of 37%. Critics argue that New York already leads the nation in taxes with residents paying significantly more per person than the national average. Despite this, the Legislature has consistently responded to revenue shortfalls by raising taxes further totaling $4.3 billion in 2021 and an additional $1.1 billion last year. The consequences of these hikes are evident in the state’s declining population with over 533,000 residents leaving between July 2020 and July 2023 according to State Comptroller Thomas DiNapoli leading to a substantial loss in tax revenue.
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Concerns Mount Over Economic Impact of Proposed Tax Hikes
Economists warn that further tax hikes would exacerbate New York’s competitive disadvantages and accelerate the exodus of high-earning taxpayers. With Governor Hochul expressing reluctance towards additional tax increases, the outcome of the ongoing budget negotiations remains uncertain. However, if tax hikes are approved critics fear that the outbound stampede will only intensify, posing significant challenges to New York’s economic stability and competitiveness.
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