New York to tax top earners.
To sum up the New York Times article: New York Democrats in the Assembly have come to an agreement with New York Democrats in the Senate and the New York Democrat in the Governor’s office to raise state taxes on all incomes above $300,000/year. This is felt to be the best way to handle the looming 3.2 billion deficit in taxes from the previous projected budget – as opposed to, say, spending 3.2 billion less next year. Meanwhile, Democratic Assembly Speaker Sheldon Silver went to some trouble to make certain that this tax plan did not include tax offsets for homeowners; the suggestion that this is for partisan political purposes is, of course, scurrilous. So, no doubt, is the observation that this tax bump is going to be squarely hitting small businesses at the same time that some of them are going to get hit on their federal tax burden as well.
And, of course, it is completely unfair to point out that New York’s economy is critically dependent on the collection of talent, capital, and organization that was already in poor financial health even before this new development. I am given to understand that the inhabitants of Wall Street tend Democratic in both contributions and elections. It’ll be interesting to see how many times they can be kicked before there’s a general reassessment of that policy. Presumably it won’t happen right way, if only because it takes time for people to admit to themselves that they actually do have class interests, and they’re not voting them; but patience is a virtue.
As for the rest of New York, I ask what I asked the Washingtonians earlier: how’s one-party rule working out for you guys?
Crossposted to Moe Lane.