TakeAway: A new study says high taxes are driving people away from NY … especially NYC.
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Excerpted from WSJ: Escape from New York, Oct. 28, 2009
An old saying goes that the time to live in New York is when you’re young and poor, or old and rich—otherwise, you’re better off somewhere else. .
Between 2000 and 2008, the Empire State had a net domestic outflow of more than 1.5 million, the biggest exodus of any state, with most hailing from New York City.
The departures have perilous budget consequences, since they tend to include residents who are better off than those arriving. Statewide, departing families have income levels 13% higher than those moving in, while in New York County (home of Manhattan) the differential was 28% .
In 2006 alone, that swap meant the state lost $4.3 billion in taxpayer income. Add that up from 2001 through 2008, and it translates into annual net income losses somewhere near $30 billion.
According to the Tax Foundation, between 1977 and 2008, New York has ranked first or second in the country for its state-local tax burden compared to the U.S. average.
That pattern is consistent with the annual migration patterns, showing that highly taxed and economically lackluster states were most likely to end up in residents’ rear view mirrors. According to the annual study by United Van Lines, states like New York, New Jersey, Michigan and Illinois have been big losers in recent years.
Greener pastures that drew New Yorkers included states like Florida, North Carolina and Pennsylvania.
Liberals continue to insist that they can raise taxes ever higher without any effect on behavior, but the New York study is one more piece of evidence that this is a destructive illusion.
Full article:
http://online.wsj.com/article/SB10001424052748703574604574499772371161800.html?mod=djemEditorialPage
The Homa Files 
October 28, 2009 at 11:33 am |
They are not leaving because of the taxes. They are leaving because they realize they hate the Yankees. Let’s go Phils!