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Taxing the Rich Backfires in New York

Yesterday’s Ithaca New York Journal reports that New York’s efforts to "tax the rich" has backfired. The newspaper wrote:

“This year, the deep pockets of New York's rich were tapped like never before. The state's wealthiest pay new higher income tax rates, higher taxes for limousines and yachts, more to enter a horse in a race and more to dabble in real estate.

“Meanwhile, many are losing millions from the closing of business tax loopholes and those making over $1 million are losing tax deductions others get.

“Now, early revenue figures suggest that taxing the wealthy more under this year's state budget may have driven away richer New Yorkers. That could make the economic comeback for the state even harder.”

New York governor David Patterson told a group of newspaper editors, “You heard the mantra, 'Tax the rich, tax the rich . . . We've done that. We've probably lost jobs and driven people out of the state." The state’s lieutenant governor added, "People aren't wedded to a geographic place as they once were. It's a different world,"

The news story added, “Developer and New York icon Donald Trump told Fox News in April that the higher tax rates were foolish, stupid and "a total disaster for the state." The wizards of politics, eh?

HT Taxing Tennessean

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