New York ain’t what she used to be.
According to a report from The New York Post, New York state income is down nearly $16 billion dollars compared to pre-pandemic levels —not exactly the recovery Governor Hochul was hoping for. In fact, residents continue to flee at record rates.
From The New York Post:
The Empire State’s pool of adjusted gross income shrank by nearly $16 billion in 2021 compared to just two years ago — representing a major loss in potential tax revenue compared to pre-COVID levels, according to newly released data from the Internal Revenue Service cited by the Wall Street Journal.
The data shows New York lost a whopping $24.5 billion in state-adjusted gross income in 2021 as residents relocated. That marked a major uptick from the state’s loss of $19.5 billion in 2020 and just $9 billion in 2019.
Much of that has wound up in Florida, which has seen a $10 billion windfall in 2021 stemming from newly arrived New York transplants, according to the data.
Adjusted gross income is used to help calculate how much a person owes in income tax.
“The overall income subject to tax in New York is going down because people are moving out,” said Andrew Cohen, senior manager for state and local tax group at Eisner Advisory Group, LLC.
Cohen said the overall hit to the state’s coffers is hard to gauge because residents are taxed at variable rates depending on their income. New York’s top earners are taxed at the highest rate in the nation at 10.9%.
“I’ve had a lot of clients calling about leaving New York for lower-tax states, especially Florida,” Cohen added.
More over at The New York Post:
New York’s income sinks nearly $16B compared to pre-COVID as residents flee at alarming rate https://t.co/fMLYsi2Spp pic.twitter.com/iiO1cqHzMs
— New York Post (@nypost) May 1, 2023