There’s a Reason Why New York Lost 2nd Biggest U.S. Economy Status

According to a report by Elizabeth Harrington over at CNSNews, New York State “accounted for the biggest migration exodus of any state in the nation between 2000 and 2010, with 3.4 million residents leaving over that period.”

“Over that decade the state gained 2.1 million, so net migration amounted to 1.3 million, representing a loss of $45.6 billion in income.”  (Elizabeth Harrington, “Escape From New York?” CNSNews, 5/29/12)

Where are New Yorkers going and why you ask? They’re headed to places like Florida with more “lenient tax” systems and better weather.

“The Tax Foundation found that more than 600,000 New York residents moved to Florida over the decade – opting perhaps for the Sunshine State’s more lenient tax system – taking nearly $20 billion in adjusted growth income with them.”  (Elizabeth Harrington, “Escape From New York?” CNSNews, 5/29/12)

You see, New York is consistently one of the highest taxed states in the country. Consider:

“New York ranked second among the states for the highest state and local tax burden in 2009. The Empire State was ranked highest for tax burden every year from 1977 until 2006, except in 1984 when it was ranked second.”  (Elizabeth Harrington, “Escape From New York?” CNSNews, 5/29/12)

“New York State has a progressive personal income tax rate ranging from 6.45 percent to 8.82 percent for those earning over $2 million. Sales varies by county, and is between seven and eight percent. In Manhattan, the sales tax is 8.875 percent.”  (Elizabeth Harrington, “Escape From New York?” CNSNews, 5/29/12)

“New York also levies a gasoline tax at 49.0 cents per gallon and a cigarette tax of $4.35 per pack, along with an additional $1.50 per pack in New York City.”  (Elizabeth Harrington, “Escape From New York?” CNSNews, 5/29/12)

With taxes like that, would you want to live there? Apparently lots of people have decided enough is enough. It may also help explain how New York went from the 2nd largest U.S. economy in the last decade to 3rd, with Texas taking over the number two spot, hot on the heels of another overly tax-burdensome state, California.

“Texas became the USA’s second-largest economy during the past decade — displacing New York and perhaps heading one day toward challenging California — in one of the biggest economic shifts in the past half-century.”  (Dennis Cauchon, “Texas Wins In U.S. Economy Shift,” USA Today, 6/21/11)

“Texas notched one of the biggest increases in size in a half-century, surpassing $1 trillion in annual economic output.”  (Dennis Cauchon, “Texas Wins In U.S. Economy Shift,” USA Today, 6/21/11)

“The state gained nearly a full percentage point in its share of the U.S. economy during the decade, reaching 8.3% in 2010.”  (Dennis Cauchon, “Texas Wins In U.S. Economy Shift,” USA Today, 6/21/11)

“This growth in economic clout has been matched only twice in the past 50 years — by California in the 1980s and Texas itself during the 1970s oil boom.”  (Dennis Cauchon, “Texas Wins In U.S. Economy Shift,” USA Today, 6/21/11)

New York should take a look in the mirror and figure out a way to spend less, tax less and become more economically prosperous. Otherwise the state will wake up one day with no one to pay any taxes.

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