Monday, November 23, 2020

Chasing the Rich out of New York and New Jersey

Is New York going to make a great comeback? Will there be a New York City renaissance? Jerry Seinfeld thinks so, and don’t you consult with stand-comedians when you are looking for a vision of the future?

The problem is the politicians. New York City and State are being led by some of the most inept politicians anyone has ever seen. Gov. Cuomo is continuing his war against orthodox Jews. Being the Lord High Executioner of the coronavirus, Cuomo wrote a book proclaiming himself to have provided great leadership-- leadership, incidentally, that sent recovering patients to nursing homes where thousands caught the virus and died. 


As for Mayor de Blasio, he has just shut down public schools in New York. The CDC and even Dr. Fauci say that there is no reason to shut down schools, that the actions hurt more than help children. And besides, shutting down schools causes poor children and poor parents the most damage. But, de Blasio is a moron, so what did you expect?


But, what with the exodus of the wealthy from New York City, the city budget is in serious trouble. As is, if we are to believe the governor, the state budget.


The top 1% pay something like 40% of city taxes. Lose a few of them and you will find yourself running out of money. Naturally, the city and the state are awaiting a rescue package from the federal government, but that seems now to be in some serious doubt. 


Deep blue state New Jersey is having the same problems. Now it has lit on the usual Democratic solution to all fiscal problems-- to raise taxes. In the current case, the two states want to tax stock transactions that occur on Wall Street and in Northern Jersey.


Liberals have long considered these transactions, which rise into the trillions of dollars, as the pot of gold at the end of the rainbow. Who could worry about a tax of a penny here and there?


Well, the stock exchanges, for that matter, are seriously disturbed by the new proposals. Their representatives are currently traveling to Texas to discuss plans to move their operations to Dallas in the Lone Star State.


The New York Post has the story, in an editorial (via Maggie’s Farm):


Lawmakers in New York and New Jersey just won’t be happy until they drive Wall Street firms clear out of the area, taking their jobs — and tax revenue — with them.


Proposed stock-transfer taxes in both states have already prompted the New York Stock Exchange, Nasdaq and other power players to come together to form the Coalition To Prevent the Taxing of Retirement Savings and to actually test the viability of relocating elsewhere.


Nasdaq is already meeting with Texas Gov. Greg Abbott to discuss new data-center operations in Dallas.


The companies don’t want to move but are “concerned about the possibility of rising costs” and about customers who are concerned with costs, a spokesman says.


New York City has become a great metropolis because of Wall Street. Now, the politicians want to put an end to all of that:


Upshot: In their short-sighted attempt to gin up new revenue, these bills could drive a stake through the heart of Wall Street — and wind up costing both states a fortune in lost tax revenue.


That’s surely the last thing New York needs, with the securities industry accounting for 17 percent of state tax revenues and 6 percent of the city’s — and both city and state facing dire cash crunches.


Keep in mind, when exchanges move out of state, this gives Wall Street players and their associate staff far less reason to stay in town. Vaccine or no vaccine, it looks as though the exodus from New York is going to continue.


Of course, the politicians could come to their senses. Unfortunately, but they seem motivated by a will to punish the rich. And they will not be satisfied until they chase the rich out of town.


4 comments:

Sam L. said...

"The top 1% pay something like 40% of city taxes. Lose a few of them and you will find yourself running out of money. Naturally, the city and the state are awaiting a rescue package from the federal government, but that seems now to be in some serious doubt."

I'm sure that Mr. Biden, if he wins in the Electoral College, will be happy to help them.

What can I say, but The STUPID is STRONG in these ones.

jabrwok said...

I wouldn't mind but for the fact that they're likely to bring their voting habits with them, and Texas is already too Californicated for my taste.

We really need to pass a law prohibiting voting by new residents until after they've been in-state for at least seven years.

Pat V said...

Wall Street backed Biden 5 to 1.

Why should we care?

370H55V said...

Will the WSJ be re-named "The Dealey Plaza Journal"?