The state of New York has an astronomical budget, and an incredible
propensity to spend money; like the federal government, New York
spends tax revenue faster than it can collect it; the Empire State
automatically raises income taxes each year with the help of
inflation bracket creep.
Gov. Kathy Hochul (D) claims that the one-time (HA!) payments
will "provide relief to New Yorkers who have paid increased sales
taxes due to inflation (another HA!). However, New Yorkers are
paying more tax on everything, including dining at restaurants
and pet food for Fido and Kitty. Unlike the federal government,
Albany hasn't adjusted New York's tax brackets since 2016.
New Yorkers therefore are shoved up into higher tax brackets as
their nominal wages gradually climb.
Congress stopped this stealth theft by inflation regarding federal
income tax, but around one-third of the states don't do this;
New York, being one of these states, has this in store for a single
filer making $90,000 annually while living in New York City:
a top state-and-local tax rate of 9.9% (!).
Now, New York income tax collections during the first half of
this year are a whopping 75% higher than in 2022. Although the
state could end the inflation tax the Democrats, who have a
rock-solid majority in the state legislature, don't want to give
up the resultant revenue (!!). They spend much of it on their
special-interest constituent groups and brag about their
"generosity" to voters --- ah, but do regular everyday New Yorkers
see any of that money, at least enough to make any real difference?
If you think that they do, then Gov. Hochul has a great big bridge
in Brooklyn that she would love to sell you! And of course the
Big Apple is no different in this regard.
And New York City is getting ready to elect a hard-boiled Marxist to be
their new mayor, a candidate who would raise taxes even higher (!!!).
The Mayoral front-runner, Zohran Mamdami wants to do this in order
to establish government-run grocery stores which supposedly would
sell their wares at lower prices than its private sector-run counterparts
and guarantee apartments with far cheaper rent, with a further
infusion of rent-control (!!!!). For years New York's voters have fallen
for such malarkey from "progressive" candidates for local offices,
with nothing ever working out as promised.
And there's nothing to suggest that there's ever going to be anything
other than another repeat under a Mamdami administration. Sigh.
MEM
