“People Voting with Their Feet”
A group of 250 CEOs and business leaders sent a letter to New York Governor Andrew Cuomo and Democratic members of the State Assembly and Senate on Tuesday, expressing “alarm” at what may people the largest tax and spending increase in the state’s history.
The letter signed by JP Morgan Chase CEO Jamie Dimon, BlackRock Inc Chairman and CEO Larry Fink, JetBlue CEO Robin Hayes, Pfizer Chairman and CEO Albert Bourla, Citigroup CEO Jane Fraser among many others, says,
“This is not about companies threatening to leave the state; this is simply about our people voting with their feet. Ultimately, these new taxes may trigger a major loss of economic activity and revenues as companies are pressured to relocate operations to where the talents wants to live and work.”
The letter also highlighted the challenges that New York faced in the 1970s, reminding Democrat lawmakers that New York lost half of its Fortune 500 companies at that time and it took nearly thirty years to recover as a result.
“Only about 10% of our colleagues are in the office and prospects for the future of a dense urban workplace are uncertain. Many members of our workforce have resettled their families in other locations, generally with far lower taxes than New York, and the proposed tax increases will make it harder for them to return.”
Lawmakers have proposed a series of tax hikes on individuals and corporations that are expected to top $6 billion a year. They say the hikes are needed to address the inequality issues generated by the coronavirus pandemic and need the money to reduce the wealth gap and fund social programs.
If the tax hike on individuals happens, residents of New York City are expected to face a 15% income tax. Combined with Joe Biden’s proposal to increase taxes, Trish Regan writes that the top marginal tax rate would equal 70% making New York one of the highest tax places to live in the world.