(BigGovernment.news) Economics 101 is one thing that liberals don’t get and will never understand. Second to that is tax policy.
Liberals think that government “creates jobs” – and that is true to an extent. When you grow government, you “create” jobs. But you rob from the tax base to create those jobs because government employees pay far less in taxes than it takes in tax dollars to pay their salaries.
Private sector job creation is much better because that employment that is not paid for out of government (taxpayer-infused) coffers and, as such, is not a net fiscal negative on federal and state budgets. Economic growth comes not from the number of government jobs created but the number of private-sector jobs created. Were the opposite true, Venezuela would be a superpower, not a basket case.
Speaking of employment and taxes, another thing that liberals don’t understand is that higher taxes may temporarily raise revenues for government, but eventually you can reach a point where taxes are so high they produce negative revenue. Count socialist New York City Mayor and his hopelessly liberal city council as part of that group of Democrats who arrogantly deny basic tax and economic realities.
As reported by the New York Post, taxpaying New Yorkers are getting out of the Big Apple “in droves,” most seeking less-expensive, less-taxing locations:
In 2014, 126,000 New York tax filers fled to other places in the United States — more than from any other state, according to the study posted on newgeography.com by two demographers.
The Empire State also lost the most “high earners,” who reported incomes of more than $200,000 a year.
Wendell Cox, co-author of the study, said the population of New York is growing, but much of that growth is attributable to immigration. He also said many residents are leaving because of high property taxes and housing costs.
“The property taxes are bad, but they are on top of an even worse situation in terms of affordability,” he said.
Meanwhile, lower-tax, private-sector growth states like Texas, South Carolina and Florida took in the most new inhabitants.
But the state’s leaders are content with believing that none of this is happening, that there is good growth, and that they are responsible for it.
“The fact is that under this administration, New York has a record number of private-sector jobs, unemployment below the national average, and passed reforms that led to the lowest middle-class taxes in 70 years, the lowest corporate tax rates since 1968 and the lowest manufacturing tax rate since 1917 and a property-tax cap,” Richard Azzopardi, a spokesman for Gov. Andrew Cuomo, told the Post.
Sure. So how does that explain the fact that the cost of living in New York is 29 percent higher than the national average – led by higher costs in child care (90 percent); taxes (69 percent); and housing (22 percent)? When you’re the most expensive place on the map, falling a few percentage points really doesn’t make much of a difference – other than as a talking point, which doesn’t pay average New Yorkers’ bills.
And there is this very real anti-tax migration issue that Democrats in the state don’t want to address, other than to claim it isn’t happening.
“There are many reasons people choose to leave New York state, just as there are many reasons people choose to come to New York state,” said Fiscal Policy Institute Executive Director Ron Deutsch, who pointed to a Stanford University study that found that those who earn at least $1 million a year won’t move from high-tax states. “To suggest migration is based on high taxation is pure speculation.”
Great. So what does New York do, change its nickname from “The Empire State” to “The Millionaire State?” What happens when taxes go so high even millionaires won’t pay them anymore?
Arrogance and denial are what is preventing real reforms and real economic growth from taking place in New York.
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(c) 2016 USA Features Media.