Eat the rich: Great song, bad social policy
Paterson: Taxing the rich backfired; the rich left the state
ALBANY – This year, the deep pockets of New York’s rich were tapped like never before. The state’s wealthiest pay new higher income tax rates, higher taxes for limousines and yachts, more to enter a horse in a race and more to dabble in real estate.
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Meanwhile, many are losing millions from the closing of business tax loopholes and those making over $1 million are losing tax deductions others get.
Now, early revenue figures suggest that taxing the wealthy more under this year’s state budget may have driven away richer New Yorkers. That could make the economic comeback for the state even harder.
“You heard the mantra, ‘Tax the rich, tax the rich,”’ Paterson said Wednesday at a gathering of newspaper editors at an Associated Press event in Syracuse. “We’ve done that. We’ve probably lost jobs and driven people out of the state.”
“People aren’t wedded to a geographic place as they once were. It’s a different world,” New York Lt. Gov. Richard Ravitch said.
Ravitch said last year’s surcharge on income taxes for the next three years won’t likely meet budget expectations. He said Albany must look to politically difficult spending cuts, rather than more taxes, to meet a deepening shortfall that Paterson estimated Wednesday could reach $3 billion.</em>
On the other hand, it did cause Rush Limbaugh to move out of state. That’s gotta be a plus, right?
