They just don't get it. Raising taxes on your richest only works when they have no other way to shelter their assets, or no other way to move/escape your increased taxation. Now that SALT deductions are minimized for those with high income and property taxes, you'd think an intelligent governor would say "whoa, we need to figure out how to lower costs for these folks or they might leave." You'd be wrong. Never, ever underestimate the stupidity of politicians, especially democrats when it comes to taxation. I mean, why would rich folks with other options want to live in NY now? The weather?? ---------- NY Gov. Cuomo Targets Hedge Fund Managers With 17% "Fairness Fix" Tax We suspect Puerto Rico and Miami may be about to see a mass immigration... from New York state... Never one to miss an opportunity for some virtue-signaling and wealth distribution, New York State Governor Andrew Cuomo announced today, legislation to close carried interest loophole with a so-called "Fairness Fix." Under U.S. law, part of income earned by hedge fund managers, private equity investors, venture capitalists and certain real estate investors is known as carried interest and is treated as capital gains, rather than as ordinary income, resulting in lower capital gains tax rates. This is reportedly costing NY state about $100m/year. Cuomo proposing legislation treating “this hedge fund compensation” as ordinary income for state tax purposes. “By imposing a 17 percent "Fairness Fix," every hedge fund manager working in New York State - including those living outside of the state - will be required to pay their fair share and losses under the federal tax code will be compensated. This proposal could raise nearly $1.1 billion annually and help ease the impacts of the federal tax plan.” Full Press Release: GOVERNOR CUOMO ANNOUNCES MAJOR STEP IN CLOSING CARRIED INTEREST LOOPHOLE WITH NEW "FAIRNESS FIX" TO ENSURE JUSTICE FOR NEW YORK TAXPAYERS Governor's Proposal Could Raise More Than $1 Billion Annually Governor Andrew M. Cuomo today announced legislation to close the carried interest loophole, deliver fairness to all New York taxpayers, and help alleviate the impacts of the Trump administration's federal tax plan. This proposal will fix and equalize the tax treatment of income for private equity investors. Currently, investors pay lower tax rates than ordinary New Yorkers on their income by way of the carried interest loophole. The "Fairness Fix" could raise nearly $1.1 billion annually. "While the federal government stacks the deck in favor of the wealthy and corporations at the expense of the middle class, we are taking action to protect hardworking New Yorkers and ensure fairness and equality," Governor Cuomo said. "Closing this egregious loophole will further this administration's efforts to promote economic justice and establish a fair tax code for working men and women across New York." Under current federal law, a portion of income earned by hedge fund managers, private equity investors, venture capitalists and certain real estate investors - known as carried interest - is treated as capital gains, rather than as ordinary income. As a result, this income is afforded favorable tax treatment in the form of lower capital gains tax rates. This loophole costs the state approximately $100 million every year. To ensure justice for New York taxpayers and take proactive measures to fight back against the federal government's tax plan, the Governor has proposed legislation that would treat this hedge fund compensation as ordinary income for state tax purposes. The legislation would also impose a "Fairness Fix" to close the carried interest loophole under New York State's tax code. By imposing a 17 percent "Fairness Fix," every hedge fund manager working in New York State - including those living outside of the state - will be required to pay their fair share and losses under the federal tax code will be compensated. This proposal could raise nearly $1.1 billion annually and help ease the impacts of the federal tax plan. The legislation puts forward a comprehensive, regional approach to addressing the carried interest issue, taking effect only if Connecticut, New Jersey, Massachusetts and Pennsylvania enact legislation having substantially the same effect as this bill. Governor Cuomo has advocated for hard-working New Yorkers since day one, as Republicans in Washington threaten the economic future of New York State. The Governor has traveled across New York to warn against reforms to the tax code that would increase taxes on New Yorkers by $14.3 billion. The Governor's proposal will build on years of action to reduced tax rates for New York's middle-class to the lowest level in 70 years. In addition, the progressive income tax rate for taxpayers earning over $1 million, which was enacted by the Governor in 2011, will remain in place through 2019. In 2016, the Governor enacted a multi-billion-dollar tax reduction that will save New York's middle-class nearly $6.6 billion in just the first four years, with annual savings reaching $4.2 billion by 2025. Over 4 million taxpayers will see an average of $250 in savings next year alone, and $700 annually when fully effective. * * * While Illinois was the most ditched state in 2017, we wonder if New York will top that list in 2018... on a dollar tax revenue basis!? As we've pointed out before, there is a growing wave of domestic migrants that are abandoning over-taxed and generally unaffordable metropolitan areas like San Francisco, New York, Chicago and Miami in search of better lifestyles in the Southeast and Texas. One thing is for sure, Cuomo's donations from the great and good of Wall Street is about to collapse.
LOL, yeah. NJ has some of the highest property taxes in the nation. Coming from there, I can tell you I'd never, ever go back.
When Trump advocates something = He is anti establishment and man of the people When a Democrat actually does that very thing = Sky is falling, rich gonna leave us! Conservatism = Ideology of the dumb and the disingenuous.
Years ago there was talk about some of the exchanges moving to NJ. That was my point. Honestly, if they were smart they could eat NY's lunch with some sensible changes in taxes.
That's a very ironical post, making an uneducated assertion and getting it wrong. Clinton’s margin surged in the 50 most-educated counties Clinton collapsed in the 50 least-educated counties High-education, medium-income white counties shifted to Clinton Highly educated majority-minority counties shifted toward Clinton Low-education majority-minority counties shifted toward Trump http://fivethirtyeight.com/features/education-not-income-predicted-who-would-vote-for-trump/ Wanna talk more about how Dems are uneducated?