Mass Exodus from NYC Due to Taxes

by Martin Armstrong

 

Taxes have begun to cross the point of no return in New York City. New York City is losing its middle class faster than at any time since the Great Depression. While the rich get richer from investments and the poor get richer from increased social benefits, the loser is always the middle class.

The latest US Census data reveals that NYC is losing 100 residents each and every day as people are simply fleeing in search of a better quality of life where the local governments are less oppressive.

What is beyond reason is normally the price of anything declines if you buy it in quantity. Corruption in government works in reverse. The taxes you pay in cities are always higher than in the suburbs where you would think you should be paying less because there are more people contributing. Governments just defy logic.

As the middle-class leave, everyone else will suffer. The rich get richer from investments which are generally are tax-free until you sell them, except in real estate. The poor get the benefits so they do not contribute. It is the average worker who pays payroll taxes who the governments can count on until now. The tax-increases have been relentless, the ever-rising living costs accelerated by real estate taxes and insane healthcare increases every year, and wage reductions as technological advances help replace workers without pensions and healthcare costs. The middle-class who have any brains left are looking for greener pastures. just to survive. The Democrats always promise the world and will raise taxes on the rich, but that never seems to lower taxes for the middle-class. Taxing the rich only enriches the politicians.

The rich can move their investments to more favorable jurisdictions, but the wage earner cannot transport their labor to a more friendly environment without moving themselves. The poor do not have to leave as long as the benefits keep coming. But sooner or later, the house of cards collapses for all that will be left are government employees and those demanding benefits.

 

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