Trump says Americans 'fleeing' New York over high taxes

By TaxesFOXBusiness

California's high-tax state exodus

Dolly Lenz Real Estate CEO Dolly Lenz and Dolly Lenz Real Estate Managing Director Jenny Lenz on high taxes in states such as California and New York driving residents to leave for lower-tax states.

President Trump took to Twitter on Monday morning to slam New York State over its high taxes, citing them as a reason residents were leaving.

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Trump also said the New York State government was "illegally using the state's legal apparatus" to 'destroy' the National Rifle Association (NRA).

As previously reported by FOX Business, New York is one of the states that saw a net outflow of residents in 2018.

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“About 0.47 percent of people have migrated out of New York, which is the highest of any of the 50 states … it’s like 40,000 people,”  Dolly Lenz Real Estate Managing Director Jenny Lenz told FOX Business’ Maria Bartiromo, adding that many of them are moving to Florida because “the taxes are so low.”

New York had the fourth-highest number of individuals move out in 2018. About 61.5 percent of all moves were outbound, according to a recent study

Those with low yearly incomes – below $50,000 – and those with incomes between $75,000 and $150,000 moved out of the Empire State at a high rate, as did those with incomes of more than $150,000.

Trump also mentioned that the state did not put “up a fight against SALT,” though it was unclear exactly what he meant. Under the Tax Cuts and Jobs Act, Republicans implemented a $10,000 cap on state and local tax deductions which hurt residents in high-tax states like New York.

New York was found to have the highest state and local tax burden of any of the 50 states, with the average individual paying nearly 13 percent of income toward those obligations.

Gov. Andrew Cuomo has asked the president to reconsider the new cap, which he called “a gross injustice” and “an economic attack on Democratic states.” Cuomo has said this specific change to the tax code has led to a decline in revenues in his state, and says some of the wealthier residents have changed their primary residence to avoid paying more in taxes.

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New Jersey, another high-tax state, saw the largest outflow of residents last year.

Meanwhile, the states that saw the most inbound movers included Vermont, Oregon, Idaho, Nevada and Arizona. While Nevada charges no income tax, South Dakota and Washington – which also have no income taxes – also made the top 10.