Flee New York If You Can

Mish

New York is falling further down the economic rat hole. Governor Andrew Cuomo's solution is the same as ever, raise taxes.

Governor Andrew Cuomo says New York Needs to Raise Taxes.

New York Gov. Andrew Cuomo said the state will need to raise taxes to bridge its current budget deficit, even if Congress approves more funding as part of a coronavirus relief bill.

Mr. Cuomo didn’t specify which taxes the state would look to increase, and his aides didn’t answer subsequent questions. Layoffs and borrowing will also be part of the discussion, he said.

New York is one of the highest taxed states in the nation, and raising taxes will result in the continuation of the exodus from this state,” Senate Minority Leader Robert Ortt, a Republican from Niagara County, said in a statement.

As Mr. Cuomo spoke in Albany, a group of progressive advocates unfurled a banner in Manhattan’s Central Park that represented the collective wealth of billionaires in the state. In addition to raising income-tax rates, groups like Make the Road New York, which works with undocumented immigrants, say the state should also tax financial transactions and the unrealized capital gains of high-wealth individuals.

Michael Kink, executive director of Strong Economy for All, a coalition of labor unions, said Mr. Cuomo should take an all-of-the-above approach to raising revenue before resorting to cuts.

Goldman Sachs Ponders Move to Florida

Please note Goldman Sachs, the New York City-based investment bank, Plots Moving a Big Division to Florida.

Goldman Sachs Group Inc. is weighing plans for a new Florida hub to house one of its key divisions, in another potential blow to New York’s stature as the de facto home of the U.S. financial industry.

Executives have been scouting office locations in South Florida, speaking with local officials and exploring tax advantages as they consider creating a base there for its asset management arm, according to people with knowledge of the matter. The bank’s success in operating remotely during the pandemic has persuaded members of the leadership team that they can move more roles out of the New York area to save money.

Manhattan now has the most office space available since the aftermath of the Sept. 11 attacks. This time, the trend began even before the pandemic struck, with Alliance Bernstein Holding LP shaking up city boosters in 2018 with plans to move its headquarters to Nashville.

The Rich Can Flee

Cuomo didn’t specify which taxes the state would look to increase, and his aides didn’t answer subsequent questions.

He won't tell you but I will. Cuomo is looking  at hiking every current tax and likely some new ones that nobody has tied before. 

Do it Cuomo. You know you want to. 

Do everything Michael Kink, executive director of Strong Economy for All, asks, especially taxing unrealized gains on investments and all financial taxes.

Give the progressives everything they want including no cuts to pensions and services.

It will complete the New York exodus that started years ago. 

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Competition

The race is on to see which state can be most successful in driving away businesses and people.

Go for it Cuomo! Why be number 2 to Illinois?

Mish

Comments (27)
No. 1-10
Eddie_T
Eddie_T

Billionaires have no trouble bailing NY, CA, or IL if they get a better deal in another state.

As usual “tax the rich” really doesn’t mean tax the rich. It means tax the upper middle class.

I’m surprised Goldman doesn’t move to Puerto Rico. I can only assume the wives of the execs just love living in the Hamptons and shopping on 5th Avenue. Otherwise it’s a total no-brainer.

PecuniaNonOlet
PecuniaNonOlet

Fleeing isn't the solution any more than the pied piper taking all the rats out of the city and dumping them on someone else to deal with.

If people flee new york, where will they go? Austin, TX?

Seems the solution is for everyone to flee blue cities/states and move to red ones except most of the money is generated in blue states not red ones so the logic fails. If 8 million move out of New York to Austin then Austin is New York, the same demands on New York will move to Austin.

There should be a dawning realization that things will only get more challenging as the population goes from 7 billion to 8 billion to 10 billion and so on over the next couple of decades. No wonder water futures are on the market now, smart money already knows what is coming....

Webej
Webej

I like taxing the unrealized capital gains.

If prices goes down, you would logically need a rebate proportional to the current price. The credit rating of municipal bonds would dance up and down together with market gyrations. That would be a lot of fun. And you could generate armies of lawyer jobs to deal with disputes about assessing the valuations for various kinds of capital ‘buckets’, especially illiquid model-based buckets as defined by a Basel IV Committee.
What’s not to like? Simple and straightforward measures to be executed by competent city employees.

Realist
Realist

As usual, Mish, you are suggesting people change cabins on the Titanic. The correct statement is "Flee the US if you can".

BobSmith
BobSmith

Soon the entire country will become like NY. You don't know what you had till you lose it. People will pay a heavy price for ditching Trump.

CCAldrich
CCAldrich

The Demacrats really are evil! They don't care about anyone but themselves and their power!

Deedee43
Deedee43

Oracle just announced they are moving to Austin; I know a few people who just got a shakedown on their state return figures here in NY-it has started already. I don't blame people for moving at this point but being licensed here I am stuck, hard to transfer.

PreCambrian
PreCambrian

When higher taxes stops making a state a better place to live for the great majority of its citizens then the increase in taxes becomes counter-productive. New York needs to put its budget under the microscope and determine what they can live without.

That said, NY only receives about $0.80 from the federal government for each $1.00 in federal taxes that it sends out (Illinois receives only about $0.60) while Texas receives about $1.40 and Florida about $4.50. These two high population states are basically subsidized by the federal government.

1Roseburgman
1Roseburgman

New Yorkers are learning about Keynesian economics.

HateNYC
HateNYC

Cuomo is a loser; not concerned with New York residents but his own agenda. Tax the rich and legalize marijuana and New York will become a ghost town with the exception of the drug users, lazy people on welfare.


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