Gyroscopic Investing

NYTimes says Mary Poppins’ soot-on-face chimney sweep scene is blackface racism.

Gov. Andrew Cuomo announced Monday that state income tax revenues plummeted by $2.3 billion since he introduced his new budget plan last month — a bombshell that will force him to curb spending.
. . .
The loss of revenue from New York’s wealthiest puts New York in a bind because the state relies on a progressive income tax system that taxes the rich at a higher rate.

One percent of the state’s top income earners provide 46 percent of the state’s personal income tax revenues, officials said.

Cuomo said Albany can’t go to the well and tax the wealthy again because that would only worsen the situation, citing “anecdotal” evidence that high-income New Yorkers are already fleeing the state to lower-tax jurisdictions.

He offered no figures to back up the claim.

“I don’t believe raising taxes on the rich. That would be the worst thing to do. You would just expand the shortfall,” he said. “God forbid if the rich leave.” link

The article said he's blaming the lowered SALT deductions in the new tax code. It seems like he's saying that the lowered deduction is "much of the impact" of the rich having lowered incomes. I'd imagine they'd simply be paying more federal taxes, since that's where they were deducting the SALT taxes from, right?

Or am I misunderstanding, and he's saying that not being able to deduct all the NY SALT is causing people to leave the state?

Mmmm, never mind, just checked other sources to verify it was a non-fabricated story.

It was the latter:

The governor is blaming the Republican-backed federal tax overhaul that capped state and local tax deductions at $10,000 for the shortfall. He says it's prompting many of the state's richest residents -- who pay 46 percent of the state's income tax -- to either change their primary residence or leave New York entirely.
link

MangoMan wrote: ↑Tue Feb 05, 2019 8:46 am

Kriegsspiel wrote: ↑Tue Feb 05, 2019 8:37 am Mmmm, never mind, just checked other sources to verify it was a non-fabricated story.

It was the latter:

The governor is blaming the Republican-backed federal tax overhaul that capped state and local tax deductions at $10,000 for the shortfall. He says it's prompting many of the state's richest residents -- who pay 46 percent of the state's income tax -- to either change their primary residence or leave New York entirely.
link

Hmmm. Imagine that. You over tax producers, and they flee to lower tax jurisdictions. Hello, AOC/Liz Warren, are you listening? Nah.

Next up? Some kind of Exit Tax for those fleeing to lower tax jurisdictions. The feds already have one so why not states?

MangoMan wrote: ↑Tue Feb 05, 2019 11:39 am

jacksonM wrote: ↑Tue Feb 05, 2019 10:45 am

MangoMan wrote: ↑Tue Feb 05, 2019 8:46 am
Hmmm. Imagine that. You over tax producers, and they flee to lower tax jurisdictions. Hello, AOC/Liz Warren, are you listening? Nah.

Next up? Some kind of Exit Tax for those fleeing to lower tax jurisdictions. The feds already have one so why not states?

Actually, Chicago and nearby Evanston are already proposing it.

How could they possibly have any authority to do that? How would it even function?

I figured it would have to be something like a tax on home sales, a quick search confirms.

hmm. Do you get a credit when you buy again in the same city?

lol, no.

I wonder how many places have a real estate transfer tax where it hasn't been branded as an exit tax? I know Pittsburgh has a 4.5% transfer tax, which is quite a bit higher than the Illinois ones (45/1000 versus 5/1000)

Xan wrote: ↑Tue Feb 05, 2019 12:10 pm

MangoMan wrote: ↑Tue Feb 05, 2019 11:39 am

jacksonM wrote: ↑Tue Feb 05, 2019 10:45 am

Next up? Some kind of Exit Tax for those fleeing to lower tax jurisdictions. The feds already have one so why not states?

Actually, Chicago and nearby Evanston are already proposing it.

How could they possibly have any authority to do that? How would it even function?

I'm thinking it would be a lot easier to impose an exit tax on businesses than individuals. There is a lot of paperwork and interaction with the government involved in setting up and licensing a new business in a state and I'm sure it works the same way in reverse too. I could see them basing the fee for de-registering a business on the number of jobs lost, impact to the local economy, etcetera. This could have the effect of de-incentivizing companies from moving to your state in the first place but what socialist central planner ever thinks of those kinds of unintended consequences - until it's too late, of course.

There is indeed a tax on home sales in New York, at least in NYC. It applies for sale prices above $500K, which is considered the low end of the housing market here. I guess you could consider that an exit tax, although it still applies if you are buying another place in-state.

It's been amusing reading the articles on the income tax shortfall in New York. It started well before the new tax law was introduced - the New York-to-Florida train has been going on forever, and reductions in high income tax returns have been documented going back years. I don't doubt that the SALT cap exacerbated the problem. But here's something Mr. Cuomo conveniently forgot about: the market correction. More tax losses, less capital gains, and lower Wall street bonuses. This is especially bad for NYS since capital gains are taxed like ordinary income here.

Message to Governor Cuomo: God forbid you should shrink the state's ridiculous bureaucracy! Here's one of many examples: the real estate tax rebate system which you are making increasingly complex. Why not just lower residential real estate taxes and get rid of the whole STAR & coop/condo rebate machinery? Yes I know...property taxes are local whereas the rebates come from the state. So send block grants to each jurisdiction in the amount of the rebates they receive, mandating that they use 100% of the funds for across the board residential property tax reduction.

Xan wrote: ↑Tue Feb 05, 2019 12:10 pm

MangoMan wrote: ↑Tue Feb 05, 2019 11:39 am

jacksonM wrote: ↑Tue Feb 05, 2019 10:45 am

Next up? Some kind of Exit Tax for those fleeing to lower tax jurisdictions. The feds already have one so why not states?

Actually, Chicago and nearby Evanston are already proposing it.

How could they possibly have any authority to do that? How would it even function?

California and New York are infamous for trying to tax people who have already left. I believe in some cases these states claim that the tax deduction people got for contributing to retirement accounts entitles the state to tax them when they take the money out after moving to more sane venues.

MangoMan wrote: ↑Wed Feb 06, 2019 9:46 am

Libertarian666 wrote: ↑Wed Feb 06, 2019 8:01 am

Xan wrote: ↑Tue Feb 05, 2019 12:10 pm

How could they possibly have any authority to do that? How would it even function?

California and New York are infamous for trying to tax people who have already left. I believe in some cases these states claim that the tax deduction people got for contributing to retirement accounts entitles the state to tax them when they take the money out after moving to more sane venues.

They tried that logic, but it got shot down by some higher authority (I forget who/what; SCOTUS maybe?)

Probably. I don't know who else it could have been.

Seems the locals were fiercely opposed to Amazon building their HQ2 in NYC because of gentrification due to all the highly skilled, highly paid tech workers who would be attracted to the neighborhood.

https://slate.com/news-and-politics/201 ... -york.html

https://www.cnn.com/2019/02/14/tech/ama ... index.html

Amazon is ditching its plans to build a new headquarters in New York after facing backlash from members of the community.
...
After the deal was announced, critics blasted the $1.525 billion in incentives New York offered to lure the tech behemoth and worried that it would soon lead to longtime residents being priced out of their homes. Protesters took to the streets in Long Island City, criticizing the deal for being bad for taxpayers and the neighborhood.

"You have to be tough to make it in New York City. We gave Amazon the opportunity to be a good neighbor and do business in the greatest city in the world," New York City Mayor Bill de Blasio said in a tweet Thursday.

Carolyn Maloney, a New York congresswoman, said she was "disappointed" New York would lose out on 25,000 jobs and "hundreds of millions of dollars in new investments."

News flash: if you want to tax the rich, you need to have rich people around to tax.

You guys just don't get it. She's gonna take those 3 billion of tax breaks and give them to the community.

Seriously, this was crazy on so many levels. The new twist on "not in my backyard", for one: We don't want highly skilled, well educated, hardworking people in this neighborhood! Gotta keep it safe for the people on welfare who really contribute to the local "community" I guess.

I was really hopeful on this one but I guess I should have known better.

“We do not have to settle for scraps in the greatest city in the world,” said Ocasio-Cortez two days after Amazon backed off its commitment to open a new Queens facility offering thousands upon thousands of new jobs.

“We did see that this week, when we fight for ourselves and we say, ‘It’s not just about any job,’” she continued. “We need to have dignified jobs. We need to create dignified jobs in New York City, jobs that pay well. Jobs that contribute to communities.” link

It might be possible she thought they were putting a distribution center there? She draws the line at serving brunch; working in a warehouse or a truck, is just plain undignified.

I liked Joe Nocera’s piece on the HQ2 debacle: https://www.bloomberg.com/opinion/artic ... e-arrogant

sophie wrote: ↑Sun Feb 17, 2019 7:03 am Seriously, this was crazy on so many levels. The new twist on "not in my backyard", for one: We don't want highly skilled, well educated, hardworking people in this neighborhood! Gotta keep it safe for the people on welfare who really contribute to the local "community" I guess.

I was really hopeful on this one but I guess I should have known better.

You must be new around there.

Libertarian666 wrote: ↑Sun Feb 17, 2019 2:54 pm

sophie wrote: ↑Sun Feb 17, 2019 7:03 am Seriously, this was crazy on so many levels. The new twist on "not in my backyard", for one: We don't want highly skilled, well educated, hardworking people in this neighborhood! Gotta keep it safe for the people on welfare who really contribute to the local "community" I guess.

I was really hopeful on this one but I guess I should have known better.

You must be new around there.

The dealbreaker was helicopter parents, oops, executives.

David Faber (CNBC) and James Stewart (NYT) had a good conversation about it this morning. Faber pointed out that it wasn't even AOC's district.

sophie wrote: ↑Sun Feb 17, 2019 7:03 am Seriously, this was crazy on so many levels. The new twist on "not in my backyard", for one: We don't want highly skilled, well educated, hardworking people in this neighborhood! Gotta keep it safe for the people on welfare who really contribute to the local "community" I guess.

I was really hopeful on this one but I guess I should have known better.

It wouldn't be a first. Back in the '90s, Boulder Colorado actually advertised for poor people.

Kriegsspiel wrote: ↑Thu Feb 21, 2019 12:24 pm Tim Pool: The Left Is Going Insane"

He's out of date. They have gone full retard already.

He's acknowledged he just writes his video titles to comply with Youtube's algorithm.

He clarified that he's talking about the media and public personalities:

Do I mean that your average Democrat voter is going insane? I don't mean that. There's an increasing disconnection from reality among a certain group of individual and it's spreading, it's getting worse. Kathy Griffin pushed the Covington hoax, and the Jussie Smollett story. These people need to ask themselves, "Why do I keep falling for the lies?"

As you may have guessed, I am laying on my couch in a pool of sunshine binge watching Youtube videos. It's a great day to be alive.

Hopefully there isn't too much glare.