Tax hikes amounting to a staggering $7 billion could trigger what is being called the worst exit since Big Apple skirted dangerously close to bankruptcy in the 1970s. It would rock New York’s businesses and wealthy residents. A massive group of major employers and small owners warned this past Tuesday.
Tax Hikes are the Largest in the State History
The 250 job creators said this daunting plan could impose the largest tax hikes in state history. This information was in a letter to Governor Andrew Cuomo and the state’s legislative leaders. The recovery of New York will obviously be beyond hurt by the economic crisis caused by COVID-19.
Mobile Workforce – Thanks COVID-19!
“The pandemic, for better or worse, has shown that our workforce is more mobile, we could have ever imagined,” they wrote.
“Maintaining a strong presence in New York, our businesses are committing but, at this time, only about 10 percent of our colleagues are in the office. What is uncertain are the prospects for the future in regard to a dense urban workplace.”
With Tax Increases, it’s a Hard Sell to Get Workers to Come Back to the City
About 1.5 million New Yorkers, executives and entrepreneurs, said many workers “have in fact resettled their families in other locations, more generally with far lower taxes than New York. The proposed tax increases will make it harder to get them to return.”
“This is about our people voting with their feet, not about companies threatening to leave the state,” they wrote.
“These new taxes may in fact trigger a huge loss of economic activity ultimately as well as the revenues. Companies feel the pressure to relocate operations to where the talent does want to live and work.
Potential Consequences Loom in the Minds of Employers
Pointing to history, employers focus on the given desperate and substantial illustration of the possible consequences.
“During the 1970s, is what happening to New York, we lost half our Fortune 500 companies. Then, it took 30 years to recover,” they wrote.
American Rescue Plan will Help New York
In fact, the letter noted that President Biden’s currently enacted $1.9 trillion American Rescue Plan. Most of the businesses in fact advocated. Therefore, it will provide New York with a lot of cash to “eliminate the need for new state and local taxes this year.”