Being a former resident of the great state of New York myself, I find it more than a bit humorous that my former home state has now been identified as being the state which accounted for the biggest migration exodus of any state in the nation between 2000 and 2010. There were 3.4 million residents who decided to pack up and leave the 'Empire State' over that period of time, at least according to the Tax Foundation. For whatever reason it was over that same decade that the state gained 2.1 million, so the net migration amounted to 1.3 million, representing a loss of $45.6 billion in income. You have to ask yourself, why would anyone in their right mind move to a state as badly run as New York? Regarding those who decided that they had had enough, where specifically did they escape to? Well, The Tax Foundation found that more than 600,000 New York residents moved to Florida over the decade, opting perhaps for the Sunshine State’s more lenient tax system, and taking nearly $20 billion in adjusted growth income with them.
Over that same period of time, we also see that 208,794 Pennsylvanians relocated, also choosing Florida as the ultimate destination, taking $8 billion in income with them. “Many of these New York and Pennsylvania residents no doubt moved to Florida for the warm weather,” says the foundation, a nonpartisan research group. “[B]ut many more may have moved there because the state does not have an individual income tax, an estate tax, nor an inheritance tax.” The Tax Foundation has created what is terms a "migration calculator" based on data from the Internal Revenue Service, tabulating the number of individuals moving between states each year, and the amount of income affected by the shifts. The calculator shows that 612,520 people renounced their citizenship in New York State and moved to Florida in the 10-year period, taking with them $19.7 billion in adjusted growth income. And between 2009 and 2010 alone, 40,195 New York residents moved to Florida, taking $1.3 billion in income. And yet none of this has any impact on those running these states.
According to the group, New York ranked second among the states for the highest state and local tax burden in 2009. The Empire State was ranked highest for tax burden every year from 1977 until 2006, except in 1984 when it was ranked second. New York State has a progressive personal income tax rate ranging from 6.45 percent to 8.82 percent for those earning over $2 million. Sales tax varies by county, and is between seven and eight percent. In Manhattan, the sales tax is 8.875 percent. According to the Retirement Living Center, which examines tax burdens by state for those nearing retirement, New York also levies a gasoline tax at 49.0 cents per gallon and a cigarette tax of $4.35 per pack, along with an additional $1.50 per pack in New York City. New York is also one of 17 states plus the District of Columbia that collects an estate tax, with a $1 million exemption and a progressive rate from 0.8 percent to 16 percent. In 2007, New York State collected $1.1 billion from its estate and gift taxes, the highest of any of the states, according to the Tax Foundation. So where's the incentive to move to this place?
California is also very well known for its more onerous system of taxes and regulations, and the foundation shows similar trends of migration from there to other states like Texas and Arizona. The Tax Foundation ranked the not so Golden State sixth highest in the nation for state and local tax burden in 2009. Between 2000 and 2010, the most recent data available, 551,914 people left California and headed for Texas, taking $14.3 billion in income with them. Texas, like Florida, has no state income tax or estate tax. A total of 48,877 people moved to Texas from California between 2009 and 2010 alone, totaling $1.2 billion in income. Another 28,088 from California relocated to Nevada and 30,663 to Arizona, a loss of $699.1 million and $707.8 million in income respectively. Overall, California had the most departures between 2009 and 2010 – 406,883 people, representing a loss of $10.6 billion in income. And for whatever reason, over that year 365,763 people moved there, representing a net loss of 41,120 residents.
Since 2000 1.2 million more people have left California than have moved there, the second biggest net loss, after New York. Florida, meanwhile, had a negative net migration of 966,934 between 2000 and 2010 – meaning nearly a million more people moved to the state than left. Texas also has a negative net migration – 807,552 – during the same time period. Florida and Texas rank the two lowest in net migration over the decade, followed by North Carolina, Arizona and Georgia, each of which has a negative rate. The Tax Foundation acknowledges that taxes are not the only reason to flee a state. “Taxes are one of hundreds of factors that go into a person's decision to move,” it says on its website. “Others include age, technology, job prospects and the quality/quantity of government services provided.” The foundation also points out that the migration calculator is not definitive. “A true study that sought to quantify the importance of taxes for locational decisions would need to account for as many other factors as possible, in addition to possible serial correlation issues between variables, especially taxes."
While I decided long ago that it just wasn't cost effective to remain in New York, others in my family do still reside there. And it's sad really that while there are many in the state who consider themselves as being conservative, they are significantly outnumbered by residents of cities like New York City, as well as Albany, Buffalo, Rochester and Syracuse. These cities dwellers, the equivalent to the fictional Morlocks we've seen in the movies, and are of a sufficient number that allows them to very comfortably offset those of a more conservative slant thus ensuring New York remains a very reliable shade of Blue. The pluses far outnumber the minuses when it comes to deciding whether or not one should relocate out of New York. It's pretty much of a no-brainer. And the incentive to leave is there for others than just those in the higher income brackets. You don't need to be some millionaire to be able to recognize the benefits of leaving a state who views its citizens as being nothing more than as a source of ever-increasing amount of revenue.
No comments:
Post a Comment