2020 is shaping up to be tax Armageddon for New Yorkers. In 12 months from now you might have all the new taxes you want to pay ready to be signed into law. Or you could be breathing a sigh of relief. What will you do to swing things in the right direction?
This coming year is all about the presidential election. The outcome of the vote is likely to result in big swings in one direction or the other. Are you ready for it? How much difference can challenging your property taxes really make?
Tax Heaven & Hell
No one is going to confuse New York as being a glamorous international tax haven any time soon. Though it may be tax heaven or tax hell, depending on which side you are on.
If you are on the receiving side, New York’s massive menu or heavy taxes is a dream come true. It’s many billions of dollars each year, with seemingly little accountability for spending it or even accurately billing them.
If you are on the paying end, it may not feel so great.
NY ranks #50 out of 50 states for retirement. 50 being the lowest and worst possible ranking. Primarily due to taxes.
A recent study shows thousands of high income earning millennials are leaving the state due to lack of housing affordability and the high taxes. More than double the pace of this group leaving any other state.
Now online businesses face heavy taxes, employment and the tax base could suffer even more.
Suffolk County has already warned that accounting mistakes are already leading to delays in new tax bills being sent.
You’re Insanely Rich, So Who Cares?
It may not feel like it, but if you live in New York, you are among the wealthiest in the world and US. You may even be happy to pay more in taxes to help everyone else out. A 50% income tax may sound completely reasonable to you. How about if that goes up to 90%? Don’t forget all of the myriad of other taxes that are going to come out of that remaining 10%.
You are free to give your money to whatever causes you like. It is great to have the freedom to do so. It may not feel so great without a choice. You certainly won’t be staying as rich as you are.
You’re Struggling, Why Stay?
If you are struggling with the costs of living in New York, and especially high tax zones like Nassau County on Long Island, why stay?
For a start, it’s just going to follow you. New York is notorious for chasing fleeing residents with income tax investigations. On average they’ll hit you with a bill of over $100,000.
Rolling laws always seem to spread from NY and CA to the rest of the country. It’s only a matter of time. Look at rent control, online sales taxes, and new laws ending the freelance and remote work revolution.
You’ve got to put your foot down, and draw a line in the sand somewhere. Why not here?
Whether you want to pay more or less tax, get out and vote, share the knowledge you have. Make sure you challenge your property taxes so they know they don’t just have a free pass to take advantage of you every year. Make sure you are protecting tax fairness and are holding tax authorities accountable, no matter what the tax rate is.