Taxes on the wealthy are starting to drive millionaires away from New York state.
That’s according to reports this week by two government policy groups — theEmpire Center and the Tax Foundation.
Recent data show New York is one of the least attractive states for people striving to make millions of dollars.
The state ranked dead last in the nation when it comes to attracting people with annual incomes of at least $1 million between 2011 and 2012, according to a report by the Empire Center, an Albany-based think tank.
During that period, the total number of people with incomes of at $1 million increased by 29 percent, reaching nearly 392,300.
That’s compared to a growth rate of 14.6 percent in New York state, which increased from 38,240 to 43,820 people in that $1 million-plus tax bracket.
The fiscally conservative center reviewed federal tax data on adjusted gross income to arrive at the numbers.
The Tax Foundation, a think tank based in Washington, D.C., attributed the decline in New York’s growth rate to the state’s so-called “Millionaires Tax.” That refers to the jump in tax rates for incomes over $1 million, along with other factors affecting the wealthy.
That approach to high incomes also is part of the foundation ranking New York state 50 thin terms of state business tax climate. New York has the highest state-local tax burden in the country at 12.6 percent, the foundation reported.
© 2014 Albany Business Review
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