3 ms·

I've noticed that the laws of supply and demand seem to apply to tax rates as well. NY and CA, for example, are booming business hubs and have very high taxes.

by garply 18y ago

I've noticed that the laws of supply and demand seem to apply to tax rates as well. NY and CA, for example, are booming business hubs and have very high taxes. Presumably, the government thinks that there is high demand for living and working in such a place and so jacks up the amount it charges for people to be there. On the other side of the coin, tax havens seem to be located in smaller, unpopular regions. A sense of economic equilibrium might suggest that businesses will eventually flow from the pricey regions to the cheaper ones.

gibsonf1 18y ago
Very good friends of mine are planning their move out of NYC right now. So the exodus has already begun. The irony is that the net effect of the higher taxes will be less revenue as more people leave and are discouraged from making money. Somehow, basic economic lessons are never learned from the past, especially by governments.
- krschultz 18y ago
  Well, that's anecdotal. I'll offset yours with mine. My girlfriend and I are packing up and moving out of Delaware (tax rate, 0%) into NYC (tax rate, astronomical). There is more life than simply how much money is in your bank account, and living in NYC is an amazing experience.
  - jobeirne 18y ago
    It's looking like "amazing" won't be the right word in a little while. To a degree, I'm with you. Since I was a teenager, it's been my dream to live in New York, but hearing things like this makes me doubt seriously that NYC can maintain its bustling stature.
    - krschultz 18y ago
      I know it seems like that on the outside, but taxes, rent, food are not all of it. As an employee, you get paid more to compensate you for that. If money is really an issue, live in NJ, CT, or LI and commute in. My car is $300 a month + insurance + gas, eliminating all that and replacing it with $80 a month unlimited metro card saves me more than the change in cost of living. As for starting a business, there are three reasons why NYC is the place. VCs, enterprise, and employees. Our startup was 2 floors below the VC in the space previously occupied by del.icio.us. If we were in delaware, sure we wouldn't have taxes but we wouldn't have as much access to the VC. If you are selling to businesses, where will you be more efficient, the place where you can be at any company headquarters in 10 minutes, or in Delaware with a 3 hour+ car ride to get there (minor caveat with the banks in Wilmington but aside that). And if you want employees, NYC is a magnet for great talent and they are easy to find. Its not for everyone, but I highly object to people saying there is an exodus. I am more inclined now after the economic downturn to move into NYC than before. Rents are falling, engineering jobs are still paying well, the wall streeters have less bluster - it sounds great.
    - eli 18y ago
      There is shockingly little data for this supposed tax-motivated exodus from NYC. Note this oped conflates NY state and NY city in several places. The vast majority of New York State is not New York City. People are leaving Upstate and Western New York because Kodak closed up shop and the steel mill jobs are long since gone. This has nothing to do with either NYC or taxes.
      - skorgu 18y ago
        New York State grew by nearly a half-million people from 2000-2008.
  - ckinnan 18y ago
    Delaware has a significant state income tax. Maybe you're fleeing the state for non-payment? http://www.bankrate.com/brm/itax/edit/state/profiles/state_tax_Dela.asp http://www.bankrate.com/brm/itax/edit/state/profiles/state_t...
- menloparkbum 18y ago
  As a once New Yorker, I can attest that there are so many other reasons to move out of New York that I would be surprised if taxes were really anyone's primary motivator for leaving.

by garply 18y ago

gibsonf1 18y ago

Very good friends of mine are planning their move out of NYC right now. So the exodus has already begun. The irony is that the net effect of the higher taxes will be less revenue as more people leave and are discouraged from making money. Somehow, basic economic lessons are never learned from the past, especially by governments.

krschultz 18y ago
Well, that's anecdotal. I'll offset yours with mine. My girlfriend and I are packing up and moving out of Delaware (tax rate, 0%) into NYC (tax rate, astronomical). There is more life than simply how much money is in your bank account, and living in NYC is an amazing experience.
- jobeirne 18y ago
  It's looking like "amazing" won't be the right word in a little while. To a degree, I'm with you. Since I was a teenager, it's been my dream to live in New York, but hearing things like this makes me doubt seriously that NYC can maintain its bustling stature.
  - krschultz 18y ago
    I know it seems like that on the outside, but taxes, rent, food are not all of it. As an employee, you get paid more to compensate you for that. If money is really an issue, live in NJ, CT, or LI and commute in. My car is $300 a month + insurance + gas, eliminating all that and replacing it with $80 a month unlimited metro card saves me more than the change in cost of living. As for starting a business, there are three reasons why NYC is the place. VCs, enterprise, and employees. Our startup was 2 floors below the VC in the space previously occupied by del.icio.us. If we were in delaware, sure we wouldn't have taxes but we wouldn't have as much access to the VC. If you are selling to businesses, where will you be more efficient, the place where you can be at any company headquarters in 10 minutes, or in Delaware with a 3 hour+ car ride to get there (minor caveat with the banks in Wilmington but aside that). And if you want employees, NYC is a magnet for great talent and they are easy to find. Its not for everyone, but I highly object to people saying there is an exodus. I am more inclined now after the economic downturn to move into NYC than before. Rents are falling, engineering jobs are still paying well, the wall streeters have less bluster - it sounds great.
  - eli 18y ago
    There is shockingly little data for this supposed tax-motivated exodus from NYC. Note this oped conflates NY state and NY city in several places. The vast majority of New York State is not New York City. People are leaving Upstate and Western New York because Kodak closed up shop and the steel mill jobs are long since gone. This has nothing to do with either NYC or taxes.
    - skorgu 18y ago
      New York State grew by nearly a half-million people from 2000-2008.
- ckinnan 18y ago
  Delaware has a significant state income tax. Maybe you're fleeing the state for non-payment? http://www.bankrate.com/brm/itax/edit/state/profiles/state_tax_Dela.asp http://www.bankrate.com/brm/itax/edit/state/profiles/state_t...
menloparkbum 18y ago
As a once New Yorker, I can attest that there are so many other reasons to move out of New York that I would be surprised if taxes were really anyone's primary motivator for leaving.