Boosting taxes on the rich to aid illegal immigrants and other New York residents excluded from coronavirus emergency federal assistance would cause an exodus of the state’s wealthiest residents, who also generate a huge chunk of the city and state’s tax base, a top business advocacy group says.
The warning shot from the Partnership for New York City comes a day after Rep. Alexandria Ocasio-Cortez and a coalition of progressive groups launched a campaign to pressure Gov. Andrew Cuomo and the Legislature for a billionaires tax they say would generate $5.5 billion.
“Stabilization of the tax revenue base to avoid further losses should be the first objective in a recovery plan … The idea of raising tax rates on the highest earners could have the effect of creating further losses.
“The top 1 percent of earners who currently account for almost 40 percent of state tax revenues are highly mobile,” the Partnership said in a report that includes recommendations on how to recover from the COVID-19 recession.
“Many relocated to other locations during the pandemic and, after five months working remotely, some may consider permanent residence outside the city or state,” the report said.
The study noted that the coronavirus outbreak caused a temporary exodus of about 5 percent of mostly wealthy city residents who decamped to second homes outside New York.
“If this pattern holds, the tax losses facing the state and city will be extended,” the business group said.On Thursday, Ocasio-Cortez said in a video, “Governor Cuomo, we need you to pass a billionaire’s tax, in order to make sure that we’re providing for our working families. It’s time to stop protecting billionaires, and it’s time to start working for working families.”New York’s 118 billionaires have increased their net worth by $44.9 billion during the pandemic, a reported cited by the Fund […]