Government: NY loses $19.5 billion

I’m not psychic enough to get into the heads of oodles of people to make judgement about why they relocated.

And hopefully not conceited enough to smugly say “good, go away” or “they’ll be back because we’re the only place in the world”

One thing I’m certain of - I’m not in charge, trying to figure out how to fund a city - in an ever more visible gilded age, with culture in decline. And I pause to reflect for a moment - just how awesome it is not to be in charge of that - but rather - to be a spectator and keep my true feelings to myself.

https://www.kpvi.com/news/national_news/new-york-loses-19-5-…

"New York loses $19.5 billion in population exodus, IRS confirms

" The Internal Revenue Service this week released more troubling data for New York, with the federal agency showing more high-earning taxpayers leaving the state."

“And, of course, those people took their money with them. The IRS figures show the moves generated an economic exodus of more than $19.5 billion.”

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“And, of course, those people took their money with them. The IRS figures show the moves generated an economic exodus of more than $19.5 billion.”

If the money is still invested, then it is still in NY–and NY profits very handsomely. How? The same way Visa, MC, Discover, AmEx, etc ALL manage to do VERY WELL. They collect FEES on each and every transaction. Sound familiar? It should… Because NY does NOT have to pay the cost of maintaining the rich departees. It just wants (and gets!!) the revenue fees from their transactions.

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I know a central reason. The 2017 tax reform act stopped the capital gains exemption on trading fine art. I get that was a federal law. NYC was central to the art world. The tax exemption if a piece was traded and then the money was used to buy another work of art in a certain amount of time kept the market very liquid and kept prices rising.

Meanwhile other cities, notably Shanghai and Singapore I believe have such laws recently enacted to encourage the art world to descend on Asia.

The super wealthy own several homes around the world. There are 4000 families that make up the heart of the major collectors in the world. NYC has seen a decline in the business those families do in the city and a decline in the real estate values.

At this point the fine art market in NYC is rising again, but the values are at a lower than level than if the tax law had not be altered. The damage done is reversing out but that money is also now elsewhere.

You can point to plumbers and other middle class folks leaving as well. It is not an either or. Because taxes are high in NY. But the above is the real decline in the business community. Plumbers need wealthy clients.

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Cool - then there’s no worries.

Hopefully more of the higher income leaves the city and relieved the city of the cost of maintaining them.

Maybe a tax credit for rich folks to leave the city - that would be forward thinking.

Regardless, Im glad the revenue is fine and I wonder what the Government is carping about (IRS)

Regardless, Im glad the revenue is fine and I wonder what the Government is carping about (IRS)

The report is separate from the fine art market and the wealthy collectors. But the states is being looked at by the IRS in regards to measurements of the effects of tax law and in particular the 2017 tax act. Other papers would center on the law’s change effecting the collector market.

Heck - I’m spending 6-10 months a year traveling (and getting tired of NYC/NYS taxes)

Jeff

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OrmontUS posts,

Heck - I’m spending 6-10 months a year traveling (and getting tired of NYC/NYS taxes)

A lot of us would kill for Park Slope, Brooklyn property tax rates.

BloombergLaw on New York property taxes
https://youtu.be/lZ5k05Qra8Q

$6.5 million Brownstone town home in Park Slope. Annual property tax $13,000.
$400,000 condo in Staten Island. Annual taxes, $18,000.

You’d pay about $75,000/yr on a $6.5 MM home where I live.

intercst

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Heck - I’m spending 6-10 months a year traveling (and getting tired of NYC/NYS taxes)

Trust me, you don’t want to be looking for rentals anywhere right now. Well, maybe outside the USA, but inside the USA, prices have skyrocketed almost everywhere [you would consider living].

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