Exit of Affluent Taxpayers Catches Up With New York: Justin Fox

The state income tax charts in this column omit some key information: revenue from the pass-through entity tax that New York created in 2021 so that partnerships and S-corporations that previously paid state personal income taxes could circumvent the $10,000 federal cap on state and local tax deductions. Include that, and the state’s revenue picture is much less dire, as I detail in a February 2024 piece that I recommend you read instead.

New York has been losing people to other states for a while. But something new happened during the pandemic: The people who left had higher incomes than those ...