New York City Democrats recently proposed raising taxes on the top earners in the state to combat budget cuts prompted by the ballooning costs of migrants flooding the city. However, a Wall Street Journal opinion piece warned this plan won't work, as high earners flee the state and legislators "run out of other people's money."
Last month, Rep. Alexandria Ocasio-Cortez, D-N.Y., joined 20 other New York legislators in calling for the "richest New Yorkers" to share more of the tax burden, by raising taxes on to the top 5% of earners in the state.
"The vast majority of us have felt the strain of rising prices from the grocery aisle to the housing market. Meanwhile, the richest New Yorkers have grown their wealth since the pandemic, and it’s past time they pay their fair share," the statement by New York City Democratic Socialists explained.
But Empire Center for Public Policy President Tim Hoefer claimed Ocasio-Cortez was trying to "redefine" who the "rich" were in the state. In his WSJ op-ed, he argued that the top 5% of earners translated to married couples who make around $250,000 or more, or $127,000 each.
"The top 1% of New Yorkers begins just south of $1 million in adjusted gross income. But the top 5% begins a little above $250,000—translating into married couples making $127,000 each," he wrote.
Hoefer warned that top earners in the state already account for 46% of state income tax liability. The NYC Democratic Socialists' proposal would mean the top taxpayers in the state would pay as much as 64%.
New York already has one of the highest income tax rates in the nation. Several studies have found the blue state imposes the most burdensome taxes on its residents, with 15.9 percent of net product in the state going to state and local taxes, according to the Tax Foundation's 2022 analysis.
This plan would also raise taxes on hundreds of thousands of government employees, including public school employees, he explained.
NEW YORK HAS THE COUNTRY'S MOST BURDENSOME TAXES: STUDY
"More than 168,000 New York state and local government employees were paid more than $127,000 last year. Forty-five New York school districts paid most of their teachers and administrators at least that much, and about 70 police or fire departments had mean pay above that line," Hoefer wrote. "The move from targeting the top 1% to the top 5% is a recognition that the socialist program, to borrow from Margaret Thatcher, risks running out of other people’s money."
This "socialist" redistribution of wealth will not work or "ever be enough," Hoefer argued. As New York continues to spend more money than most states, wealthy earners are fleeing for Florida.
"New York has the nation’s highest-spending K-12 public-school system, but student outcomes are middling. The state spends more on Medicaid than Texas and Florida combined. New York agencies also pay some of the world’s highest prices for infrastructure. More hasn’t been, nor will it ever be, enough," he concluded.
New York and California experienced the largest loss of tax income from migration of any states in the country, according to a recent study. The study, which used IRS migration data, also found that Texas and Florida got the biggest IRS tax benefits from people moving in.
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Fox News' Aaron Kliegman contributed to this report.
