The state of New York is notorious for its high taxes, especially the taxes it imposes on its wealthiest residents. For decades, New York’s politicians have used its wealthiest populations as an ATM for myriad expensive pet projects, something those folks haven’t minded too much because the federal government allowed those tax payers to deduct their property taxes from their income tax. It’s hard to believe, but for years the American people, the vast majority of whom don’t make nearly the money these wealthy New Yorkers do, paid those New Yorkers’ property tax bills so they could continue to live the lives to which they’ve grown accustomed.
New York state’s gravy train ended with the tax overhaul that Republicans and President Trump passed into law last year, which reduced state and local tax deductions, incentivizing New York’s wealthiest tax payers to flee the state in search of less expensive climes.
Now faced with a gaping hole its in budget, New York’s auditors are on a seek and extract mission. The purpose: to audit the state’s wealthiest defectors in an effort to squeeze as much cash as possible from them. From Fox News:
The aggressive approach by state tax collectors comes as the Empire State faces a $2.3 billion budget deficit that even Democratic Gov. Andrew Cuomo called “as serious as a heart attack.”
Cuomo, a vocal critic of President Trump, blamed congressional Republicans for passing tax reforms that reduced the state and local tax deduction Americans can take on their annual income tax forms — meaning residents of high-tax blue states like New York have been feeling the pinch, sparking their exodus.
“This is the flip side. Tax the rich, tax the rich, tax the rich,” Cuomo said last month. “We did. Now, God forbid, the rich leave.”
But New York state auditors are doing their best to ensure that those fleeing the state’s high taxes will face difficulties, including being subjected to an audit — likely to be followed by a massive tax bill.
New York’s tax structure is so oppressive even Alexandria Ocasio-Cortez’s own mother fled New York for Florida:
“I was paying $10,000 a year in real estate taxes up north. I’m paying $600 a year in Florida. It’s stress-free down here,” she told the Daily Mail from her home in Eustis.
What’s the moral of this story? Don’t move to New York to begin with, then you won’t have to deal with the tax monster.