Tax Increases May Chase Business Leaders From New York

Tax Increases May Chase Business Leaders From New York

( – Perhaps no other state suffered as much from the first waves of the COVID-19 pandemic as New York. Mass unemployment and tax revenue losses coupled with massive infection, and death rates decimated the state’s economy. As one might expect, tax and spend Democrats have decided to pass the price tag for the state’s economic recovery onto its business leaders.

On April 8, CNBC reported that New York business leaders and executives are considering a mass exodus from the state in the wake of the passage of the state’s new budget.

The newly-passed bill will raise income tax rates on New York City executives at rates exceeding those of California’s wealthy elite. Under the new budget, single filers earning more than $1 million will see their tax rate increased from 8.82% to 9.65%. Individuals making up to $25 million will pay 10.3%, and anyone earning higher will pay 10.9%.

New York Executives Are Ready to Leave

It’s no secret that New York’s highest earners would leave the state if the new budget passed — and it did. A group of business leaders from companies like Citigroup and JPMorgan Chase said as much in a public letter.

Geoffrey Weinstein, a Cole Schotz tax attorney, warned that wealthier people “don’t protest, they just leave” when hit with something they don’t like. Tracy Maitland, head of Advent Capital, agreed, saying he still loves New York but is open to leaving. Likewise, JetBlue is considering moving at least part of its operations to Florida.

Miami Mayor Francis Suarez told CNBC that the “toxic” business climate in New York had steered several businesses to Miami as a possible location to relocate their operations. As he noted, Blackstone and Starwood Capital already moved parts of their operations to the Sunshine State.

Meanwhile, Cuomo recently co-signed a letter with six other Democratic governors asking the Biden administration to repeal the cap on State and Local Tax (SALT) deductions. As the New York Post recently concluded, it appears it may be up to Washington to decide the full impact of the economic devastation created by New York’s state legislature.

It looks like New York is looking for the federal government (taxpayers outside of NY) to bail out the rich New Yorkers.

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