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Governor Paterson on New York's Sky-High Taxes: "We've probably lost jobs and driven people out of the state"

As Rush would say, "See, I Told You So":

This year, the deep pockets of New York's rich were tapped like never before. The state's wealthiest pay new higher income tax rates, higher taxes for limousines and yachts, more to enter a horse in a race and more to dabble in real estate.

Meanwhile, many are losing millions from the closing of business tax loopholes and those making over $1 million are losing tax deductions others get.

Now, early revenue figures suggest that taxing the wealthy more under this year's state budget may have driven away richer New Yorkers. That could make the economic comeback for the state even harder.

"You heard the mantra, 'Tax the rich, tax the rich,' " Gov. David Paterson said Wednesday at a gathering of newspaper editors at an Associated Press event in Syracuse. "We've done that. We've probably lost jobs and driven people out of the state."

"People aren't wedded to a geographic place as they once were. It's a different world," New York Lt. Gov. Richard Ravitch said.

To quote an old cliche, "reality bites." I'm perpetually dumbfounded by the fact that liberals, with all their high-dollar Ivy League schooling, frou-frou intellectualism, and supposed concern for the least among us, still can't grasp one of the most fundamental principles of economics -- when you want to punish an activity or a group of people, you levy taxes. Taxes are burdensome, not liberating. They slow down economies, rather than stimulate them.

And because we live in a free country, where people cannot be forced by law to reside in a certain municipality, a lot of New Yorkers seem to be voting with their feet. An exodus of talented, financially successful people is exactly the opposite of what New York needs right now, but will the state's deeply entrenched liberal government even consider lowering state tax rates in order to spur real economic growth?

A few months ago I noted that New York State seemed "stuck in a downward spiral," with a wobbly economy that is slowly forcing its working class citizens to become more and more dependent on government programs funded by high taxes that, in turn, slow down the economy even more.

But if your idyllic solution to the world's problems is centered around the redistribution, rather than the creation, of wealth, then I guess economics is little more than a bothersome distraction.

Oh, and New Yorkers -- wait 'till the ObamaCare taxes kick in.

Hope-n-ChangeTM anyone?


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Comments (21)

why isn't obama endorsing t... (Below threshold)
Dave W:

why isn't obama endorsing this guy? it's pretty much the national policy, to kill jobs, isn't it? maybe patterson is too honest about it.

I have used the example of ... (Below threshold)

I have used the example of New York for over a year now and my sneering Democrat friends (yes its possible to be friendly if you stay away from politics, just don't date them seriously!) and always the sneer just got bigger and more ugly when they said I had no proof. So I predicted that when the rich had had enough they would leave NY and then where would the money come from?

Sometimes it sucks to be right and I hope NY gets its head out of its subway long enough to fix this and draw business back. When Juliani left crime was all time low in most places, with a bad economy and even worse and growing entitlement class it is about to become murder capital again.

How does DC feel about losing to NY?

its after midnight, please ... (Below threshold)

its after midnight, please excuse my spelling of a certain ex mayor...

"We've probaby lost jobs an... (Below threshold)

"We've probaby lost jobs and driven people out of the state"

Or,... You supplanted little acorns all amongst the yuletide log and hoped and prayed for their allegiance. Much more likely. Me thinks.

Hey bet those AIG Bonuses w... (Below threshold)

Hey bet those AIG Bonuses which the States of NY and CT were getting a cut from would have looked really good about now.

You told Rush to leave better those dollars in Tax revenue would have been a helping hand.

We call this KILLING the GOLDEN GOOSE!
Dollars and Sense vs Hope and Change

So the rich vote with their... (Below threshold)

So the rich vote with their feet. What a friggin' SUPRISE! There's nothing here in the US keeping anyone from living in an area they don't want to stay in - if they've got the means to move out.

Aren't most of the rich New... (Below threshold)

Aren't most of the rich New Yorkers those who vote democrat anyway?

Side note, my wife comes from NY. She has a large family and almost everyone of them works for the state or towns. I wonder of there are enough private sector voters left to change anything.

The problem with Socialism ... (Below threshold)

The problem with Socialism is that sooner or later you run out of other peoples' money.

Margaret Thatcher

As Rush would say, "See,... (Below threshold)

As Rush would say, "See, I Told You So"

Actually...Paterson would say it, too. In fact he said last November that raising taxes would likely drive people out and he's fought with the Democrat-controlled legislature to not raise taxes (fees, on the other hand, are up all over the place because those aren't taxes, you know wink wink nudge nudge). He's aware of this. He's a lousy politician and fairly muddle-headed...but he's aware that high taxes drive away the successful and isn't afraid to say it, which puts him ahead of about 98% of Democrats. It's also probably one of the reasons the Democrats are trying to drive him out, including Obama, to put in a big government classic liberal - Andrew Cuomo (who, incidentally, played a big part in the mortgage meltdown when he was at HUD under Clinton when they made CRA into the monster that ate 2008).

Heck, they drove one guy out of the state whose taxes are probably single-handedly responsible for 1/100th of the upcoming deficit - he was paying about $5-6 mil and the upcoming deficit is $4 bil - just one guy. You only need to drive out a couple hundred very successful people from a large state to really screw yourself. Rush changed his residency, too, he's gotta be in that range, as well.

+1 zero ;) you need a bunc... (Below threshold)

+1 zero ;) you need a bunch of hundreds...but you get my point when you talk about the businesses they run and those employees, etc.

Obviously, the solution is ... (Below threshold)
Jeff Blogworthy:

Obviously, the solution is to add a punitive "moving out of state" tax.

Michael:"I'm perpetu... (Below threshold)
Les Nessman:

"I'm perpetually dumbfounded by the fact that liberals, ... still can't grasp one of the most fundamental principles of economics -- when you want to punish an activity or a group of people, you levy taxes..."

Have you started to think that there are Lefty politicians who actually DO know this and actually WANT this?
Not just whacko philosophers or fringe activists, but more and more Statists who are now getting more and more positions of real power?

Well the first step is to a... (Below threshold)

Well the first step is to admit you have a problem. Now what will you do Governor? Will you fix it, or just punt the ball to the next Governor?

New York is Kalifornia in m... (Below threshold)

New York is Kalifornia in microcosm. The state's shortfall ($43 BILLION) is being made up by raping the cities and counties of tax money. Just watch the Funemployment numbers go up. Kalifnorina has excelled at 'taxing the RICH', which works well only when the RICH make money (those greedy bastards!). Just wait until these limousine liberal "RICH" discover that they don't have to live here.

Same here on the west coast... (Below threshold)

Same here on the west coast where taxes and regulations here in KALIFORNIA are driving people away and it comes from having too many liberal demacreeps

and yet...they continue to ... (Below threshold)

and yet...they continue to elect the same Democrats...a perfect example of insanity driven suicide.

"Liberalism is a mental disease."

So they drive out the produ... (Below threshold)

So they drive out the productive folk, watch their economies spiral down, watch their tax revenue go down...

Care to bet that the next step will be to demand the government take from the prosperous states to give to the states in economic trouble through their own stupidity?

As the crowd gathered aroun... (Below threshold)

As the crowd gathered around the savagely molested and killed golden goose, the politico's were wringing their hands and saying "what a pity it was that this fine fowl has died", and the crowd started to weep and wail for the golden goose. There it lay, blood spattered all over it's feathers. Then one semi-intelligent politico said, "well, lets open her up, and finish the job." Once she's dead, she's dead, and there'll be a litlle more savaging of the corpse, but the flock of golden geese who were watching from up on the hill couldn't believe what happened to her. So, as the others made their escape, they weren't in any mood to listen to the promises of savages. Golden Geese have long memories, and once they've screwed, they NEVER come back. So, all you savages out there, if you kill one of the flock, payback plays out over decades, and all your wailing in the future is wasted, as they will have found a better place to live, and their neighbors live out in Galt's Gulch. Sound familiar, bitches?

Looks like a replay (with s... (Below threshold)

Looks like a replay (with slight modification) from an earlier theme:

"1st they came for the millionaires, but I wasn't one. Then they came for those making $500k, but I wasn't one. Then they went after the $250k crowd. I wasn't one. Finally they came for the $60K earners, I looked around and found no one to help me."

Care to bet that ... (Below threshold)
Care to bet that the next step will be to demand the government take from the prosperous states to give to the states in economic trouble through their own stupidity?

17. Posted by JLawson | September 25, 2009 2:48 PM |

It wouldn't be original making the states pay
someone elses' debts. The original nationalization of a debt was back in 1791.
Hamilton and Madison thought that one up.
They took all the states who had not paid their
revolutionary war debt, and saddled it on the
states who had paid theirs off. Of course the
in debt states did have pay a portion, just
not all of it.

As I read these comments, I... (Below threshold)

As I read these comments, I'm at a loss to explain why our politicians are powerless to stop the downward spiral of New York's economy. Seriously, many of your observations resonate. I'm a transplanted Long Islander (married a New York girl who couldn't wait to move back to her extended family), and some of things I've noticed as an outsider coming from a largely employer-friendly state are: 1) how can this state possibly afford the SALARIES and BENEFITS (incl. lifetime retiree health and defined benefit pension plans) to its top heavy public employee workforce? 2) when will this state realize that it needs to HELP small business and not TAX it to death 3) when will these politicians realize that they must CUT the bloated town, village, city, and state public employee workforce? That the people paying the taxes to support them are out of jobs (me, for over a year), overtaxed, and just plain angry at supporting a lazy government worker who is overpaid, and 4) that the tax policy has created a HUGE underground economy (reminiscent of the Soviet Union) where myriads of businesses don't ring up sales or only pay their employees in cash? The basic concept is: LOWER TAXES LEADS TO INCREASED COMPLIANCE AND THEREFORE RETURNS! Look at the former Eastern Block -- they implemented a flat tax and lowered the personal rate and -- can you believe it? -- tax returns INCREASED because the risk of noncompliance outweighed simply obeying the law. We need new leaders at the county and state levels and we need people who will take on these crazy public employee unions!






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