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NY Tax Cuts To Result In Increased State Revenue In Years To Come

New York is considered to be the no#1 city in United States to lose the most number of citizens in 2018. The primary reason behind this loss is the high rates of tax. Out of 9 states which lost its citizens last year, New York is the first. This information has been provided by the data from United States census. Unfortunately the authorities who sit at Albany and Gracie Mansion are not doing much regarding this. The shocking news is almost 1 million people have left New York since 2010.

According to experts, lowering the taxes might help. The state has made living in luxury apartments and visits to places like Manhattan more costly. For past few years New Yorkers paid 1% surcharge on more than $1 million sales. New York raised its tax rates by using the price congestion approach. This refers to increase in traffic congestion fees charged to vehicles which will be moving in or out of Manhattan. Online shopping is even costlier at this city than in the other US cities.

For this reason, millions of New Yorkers have shifted to Texas, Florida and Nevada. Almost 322513 people started living in Florida in 2018. This made the city 3rd most populated city in United States. Texas witnessed a rise in population (379128 new additions) in 2018. Nevada, which is considered to be the fastest growing state in the country saw a rise by 2.1%.

Experts feel while lowering taxes will lower the income for New York in the short term, by end of 4–5 years the revenue will rise with an increase in the population. Experts also suggested just 25% reduction in the across the board taxes. Else, they suspect by end of next 4–5 years, it will be really difficult for the city to keep its citizens.