The wealthiest 1% of NYS’ population contributes roughly 50% of the state’s coffers. Gov. Andrew Cuomo took to begging the rich to return to NYC from their second homes so they can pay taxes to fill the dwindling reserves. He said,
“I literally talk to people all day long who are now in their Hamptons house who also lived here, or in their Hudson Valley house, or in their Connecticut weekend house, and I say, ‘You got to come back! We’ll go to dinner! I’ll buy you a drink! Come over, I’ll cook!’…They’re not coming back right now. And you know what else they’re thinking? ‘If I stay there, I’ll pay a lower income tax,’ because they don’t pay the New York City surcharge…”
At the very least, Cuomo was smart enough to tell his largely Democrat-controlled legislature that raising taxes further on the rich probably wasn’t a wise idea.
“If you pass a piece of legislation that requires New York to raise taxes, raise a millionaires’ tax in this environment in New York City, where we’re struggling … We used to be worried [with a] millionaires’ tax, people might leave…We’re going to make progress helping the homeless. We’re going to clean up the graffiti. We’re going to fix crime. On top of that, you’re going to say, ‘And by the way, when you come back, you get a big tax increase.’”
Who knew? We are not sure of the culinary talent of the NY governor but if it is anything like his political acumen, it could well end up being a deterrent.