With its new package of whopping tax increases, New York State's Democratic-controlled legislature has crossed over a metaphorical fiscal Rubicon.
New York State created its income tax in 1919, after the federal Wartime Prohibition Act followed by the Eighteenth Amendment to the Constitution banned the sale of alcohol, depriving the state of a valuable excise tax.
Occasionally the tax boosters, ranging from liberal Republicans to moderate Democrats, would acknowledge the worrying trend of ever higher levies, as when Governor David Paterson said back in 2008 that friends of his in the business community had told him in response to Albany's latest tax increases, "Good luck in New York state, but we can't pay the taxes. The opportunities aren't there."
Beyond hiking the income tax and the corporate tax, which is what the legislature has settled for, the original proposal would have also increased the inheritance tax, established a new tax on New York City "Mansions," and imposed a higher capital gains tax.
The New York tax burden is already punishing enough.
New York is no longer getting a significant share of those new wealthy.
New York's new, bigger tax bite comes at a time when the state's main economic engine, New York City, faces enormous challenges retaining businesses and workers in a post-pandemic economy.
https://www.city-journal.org/ny-legislators-pile-on-tax-burden
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