New York State, according to research at WealthManagement.com, is #1 among the 50 states in the tax burden on its residents!
As the owner of a title insurance company I am obviously concerned with the health of the New York State real estate market. The levy of property taxes are always in focus, as are the somewhat regressive taxes charged by some governmental entities around the state that are craftily disguised as fees (‘Are Governments Raising Revenue Through Regressive Taxes Disguised As Fees?‘).
Overall, however, the New York State tax burden for its citizens constitutes a situation that if not remedied, could have extremely negative consequences for those of us continuing to reside here moving forward.
But, of course, there is likely a flip side to any remedy that includes maintaining taxes where they are or even cutting them. That is a potentially significant quality of life impact.
Needless to say that New York and many other states are facing a huge fiscal problem with no easy solution!
Does a Solomonic Solution Exist?
During, and certainly after the coronavirus pandemic is but a memory, New York State, its cities, counties and towns will be facing huge and growing budget shortfalls that are going to need to be filled.
It won’t be easy and there are certainly no simple answers, but the truth of the matter is that a migration away from the state to more tax hospitable states had already been occurring before the coronavirus pandemic began, and will likely increase particularly if the fiscal solution from Albany for raising revenue, is to raise taxes!
Currently, according to Business Insider, New York is already Top 10 among states in terms of people leaving!
And while extremely difficult fiscal decisions beyond my pay grade need to be made, one thing I do know is that if raising our taxes is the answer then the exodus of our citizens to Florida, Texas, Nevada, Washington and three other states will continue unabated!
Then, sadly, it will leave those of us remaining behind to pick up the financial slack impacting every aspect of the New York economy including real estate.
It’s a slippery slope, and if you’re concerned about any potential slide let Governor Cuomo know you’re thoughts!
He can be reached here…https://www.governor.ny.gov/content/governor-contact-form
Mike Haltman, CEO
Hallmark Abstract Service