Art Laffer is smiling

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Art Laffer is an economist who is known for the Laffer Curve - a look at revenues and tax rates. From InfoGalactic:

In economics, the Laffer curve is a representation of the relationship between rates of taxation and the resulting levels of government revenue. The Laffer curve claims to illustrate the concept of taxable income elasticity—i.e., taxable income will change in response to changes in the rate of taxation. It postulates that no tax revenue will be raised at the extreme tax rates of 0% and 100% and that there must be at least one rate which maximizes government taxation revenue.

The Laffer curve is typically represented as a graph which starts at 0% tax with zero revenue, rises to a maximum rate of revenue at an intermediate rate of taxation, and then falls again to zero revenue at a 100% tax rate.

One implication of the Laffer curve is that increasing tax rates beyond a certain point will be counter-productive for raising further tax revenue.

From the New York Post:

Cuomo announces income tax revenues have dropped by $2.3B
Gov. Andrew Cuomo announced Monday that state income tax revenues plummeted by $2.3 billion since he introduced his new budget plan last month — a bombshell that will force him to curb spending.

So how is he going to fix it? Raise the taxes some more to get more money? That would really demonstrate the slippery slope of the Laffer Curve. A bit more:

“That’s a $2.3 billion drop in revenues. That’s as serious as a heart attack. This is worse than we had anticipated,” the governor said in Albany.

And he already knows this:

Cuomo said Albany can’t go to the well and tax the wealthy again because that would only worsen the situation, citing “anecdotal” evidence that high-income New Yorkers are already fleeing the state to lower-tax jurisdictions.

 l like the U Haul index - from their website a few moments ago:

20190204-NYC-Dallas.jpg

20190204-Dallas-NYC.jpg

Three times more to move from NYC to Dallas - U Haul has so many trucks leaving NYC that they can charge a premium for their rental. So few moving to NYC that they offer a cheap price as an incentive for people to rent their trucks.

A point to remember too is that the elites hire moving companies, they do not drive their own U Haul trucks. This is the diaspora of the middle and lower income brackets. It is not just the rich who are fleeing New York, it is everyone.

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