NY taxes deapening the recession
I read this article about New York increasing the taxes of the rich to help alleviate the stress of the recession. From reading this article I determined that the state government truly did not evaluate the long term effects increasing taxes would have on the economy. Many of New York's wealthiest residents have now moved from the state taking their businesses and the jobs they create with them. This proves that residency in the state of New York is not nearly as inelastic as the state government had anticipated. By raising taxes the state has decreased the supply of jobs available in the New York area. Rather than improving the recession and the unemployment problem the state has only made it worse.
Posted by Dan & Britt at 10/13/2009 10:12:00 PM