The following appeared on Monday, November 13, 2023, in the Blank Slate Media newspaper chain and on its website, theisland360.com:

For years, Progressives have insisted that the rich, particularly Wall Street finance and insurance moguls, would never leave the state regardless of how high tax rates were pushed or the number of regulations imposed on business.

Why?

Because the Big Apple is the nation’s leading financial and cultural hub.

At the present time, it is true that the finance and insurance sectors are the largest portion of New York’s gross domestic product. In 2022, the GDP totaled 16%, or $327 billion. The employees of those two industries are the state’s highest earners. The average income per employee is around $275,000 annually, while the average income of all New Yorkers is approximately $51,000.

But a study released by the New York Business Council refutes Progressive claims.  It determined that the state has been losing wealthy citizens annually, especially Wall Street taxpayers.

“The Report,” the Business Council noted, “emphasizes what we have known all along—bad fiscal and business practices in New York State equate to losing people and jobs.”

And it went on to say: “Those policies are continuing to hurt the [financial and insurance] sectors today as jobs and people leave for a lower tax, lower cost of living states.”

Here’s the report’s key data:

• In 2021 New York lost $9.8 billion of income to Florida.
• Over the past three years, $933 billion in investment assets moved to other states.
• New York is outranked in financial sector growth at 0.2%, lagging behind the 4% national average, while Idaho, North Carolina, and Texas have each seen double-digit growth.

The number of New York taxpayers has also been declining since 2012. In 2021, for example, the state “lost more taxpayers to every other state then it gained from those states.” And guess what? The largest net loss was to Florida, where there is no state income tax or inheritance tax.

As for migration trends, the net migration income in most New York municipalities has been declining every year since 2012.

In other words, higher-income folks who have moved to other states have been replaced by low-income earners.

“Reviewing the net migration of income shows that the largest gross income losses were from New York County at almost $11 billion,” the report said. “The data confirms the flight of the wealthiest from the New York City area.”

The average taxpayer who moved into Manhattan is earning approximately $74,000 less than the wealthier taxpayer who moved out.

Another study released in mid-October by the Tax Foundation confirms the Business Council’s argument that the moving force for the flight of New York’s wealthiest is the overall business climate.

New York came in next to last in the Tax Foundation’s ranking of state business tax climate. New Jersey is the only state that fared worse.

“The truth came into focus,” The Wall Street Journal reported “when the Tax Foundation released its annual ranking of state business tax climate, and there’s a yawning gap between the winners and losers. The best performers ease commerce by foregoing major taxes. The worst stack up punishing rates, making new business much more difficult and costly.”

Other bad news: A University of Toronto analysis revealed that New York City business recovery from COVID continues to lag the nation. The amount of foot traffic in the city’s business district is down 33% compared to pre-COVID statistics.

New York City came in 54^th place out of the 66 cities the report surveyed. In contrast, Miami is down only 8%, Atlanta 15%, and Los Angeles is off by 17% in foot traffic.

After reviewing the findings, Catherine Wylde, CEO of the Partnership for the City of New York, told the New York Post, “A lot of our pre-COVID foot traffic involved tourists, and international tourism is still down. We also have by far the densest concentration of office workers, so the hybrid work week has had a big impact here, with average weekly presence in the office [having] dropped from 80% pre-pandemic to just under 60% today.”

Less traffic translates into less consumer spending, declining sales and hotel occupancy tax revenues.

If New York’s elected officials fail to address the state’s tax burden, business climate, cost of living and crime, the state’s motto Excelsior— “Forever Upward” will become Semper Deorsum—“Ever Downward.”

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