Governor Andrew Cuomo in his January “State of the State” address reminded listeners that the Empire State’s motto “excelsior” means “ever upwards.” However, the motto for many struggling citizens is “ever outward.” In other words, they are going out or away from New York.
In late December, the Federal government released population growth and migration data that revealed New York in 2018, continued its population losing streak. Over 180,000 people left for greener economic pastures.
“Over the last decade,” The Wall Street Journal reported, “New York has lost more of its population to other states (7.2 percent) than any other save Alaska (8 percent) followed by Illinois (6.8 percent), Connecticut (5.6 percent) and New Jersey (5.5 percent).”
And for every person who leaves, there is a net outflow of gross income. In 2018, for instance, the net outflow of New York’s adjusted gross income was a staggering $9.8 billion. One year earlier, lost income totaled $8.2 billion.
Why are people and businesses fleeing the Empire State?
First and foremost, taxes. The combined state and local taxes are the highest in the nation. Only California tops New York’s maximum marginal income tax rate of 12.7 percent.
Even many of the city’s wealthiest, who pay close to half of the total income tax revenues that flow into state and city coffers, have had it. One woman told The New York Times, “My husband and I have been in New York City for more than 20 years, but we aren’t tied to an office anymore and our kids are older. Between state and city taxes, plus about $50,000 in property taxes, it is a lot of money going out the door. Why do it?”
Then there is the high cost of living. A hundred dollars spent in New York will buy one only $86.43 of goods while in Texas it will buy more than $100 of goods. Rent for a one-bedroom apartment in New York City averages $2,600—in Houston or Dallas, it’s around $800.
Others are fleeing due to rising crime, declining government services, awful public schools, the ever-growing homeless problem, the decline in quality of life issues, burdensome government regulations, and fewer and fewer job opportunities for working-class folks, particularly in upstate New York.
E.J. McMahon, the research director at the Empire Center for Public Policy, has pointed out that “since the recession ended, upstate has gained private economy jobs at a third the national rate and less than a quarter of the downstate rate.”
The 50 counties north of Orange and Dutchess Counties, with a population of over 6 million, has, according to McMahon’s finding, “trailed far behind most of the country. In fact, much of upstate has yet to recover from the downturn.”
This pathetic economic performance helps explain why business at U-Haul rental franchises is booming.
As for employers, they are leaving in droves because they are tired of dealing with high taxes and fees, the $15 an hour minimum wage, expensive workmen’s comp insurance rates, onerous building and environmental regulations, the ban on fracking, and the newly-enacted farm-labor rights and unionization bill.
Where have New Yorkers been going? To the fastest growing states in the nation that have low taxes, affordable real estate, and plenty of available working-class jobs—Texas, Florida, North Carolina, Arizona, and Nevada.
For example, New York has been one of the top states losing population to Texas. Between 2011 and 2016, the average number of New Yorkers that have made their home in tax- and job-friendly Texas has been 20,000, annually.
Don’t expect this trend to end anytime soon. As the radical leftists controlling Albany and New York City expand their ideologically-driven tax and spend policies expect even more frustrated people to flee.
