New York politicians are desperately planning to spin the fact their state is hemorrhaging citizens at an alarming rate. Millionaires, especially, are fleeing New York, thanks to the continually rising taxes.
New York elected officials are scrambling to spin their disastrous population losses as something that can easily be reversed with just a few tweaks to the business environment, more federal aid and more spending from Albany and City Hall.
Sorry, the municipal-bond market appears to disagree.
It took a while, but New York’s millionaires have finally had enough, and they’re headed south for a more pleasing economic climate.
Despite constant bashing from class-warfare-obsessed progressives, those much-maligned millionaires and billionaires generate most of the city’s and state’s tax revenues. Rich people were willing to pay high taxes and subsidize this largesse because the Big Apple was still the cultural center of the world, and because under Mayors Rudy Giuliani and Mike Bloomberg the streets remained safe.
If history is any guide (see the 1970s fiscal crisis) it won’t end well. Once the federal COVID-relief money dries up, Hochul and Adams will be looking at a shrinking tax base, much higher debt-service costs and big budget problems — just what the markets are foreshadowing. Politicians may spin, but municipal-bond prices don’t lie.
This is a good news, bad news situation. On the one hand, people are fleeing New York, which will cripple the tax base. On the other hand, these New Yorkers will bring their leftist policies with them, and ruin some southern states with their politics.