Here are some reactions to Tom’s decision to move to Florida.

American Issues Project says it comes down to a simple question: are you entitled to the money you earned.  Read that HERE.  Other takes on Monroe Rising HERE and on the Lonely Conservative HERE. 

The Watertown Times says other people will follow HERE while the Retail Alliance says it’s an important statement here.

Other takes from Albany Insanity HERE and Buffalo Pundit HERE. 

What’s your reaction?  Tell us in the comments section.

I love New York. But how much should it cost to call New York home? Decades of out of control budgets, spending increases and relentless borrowing have made New York simply too expensive.

Politicians like to talk about incentives: incentives for businesses to relocate, incentives to buy local and incentives to make smart decisions. After reviewing the 2009 budget I have identified the most compelling incentive of all: a major tax break immediately available to all New Yorkers. To be eligible, you need only do one thing: move out of New York State.

Last week I spent 90 minutes doing a couple of simple things—registering to vote, changing my drivers license, filling out a domicile certificate and signing a homestead certificate—in Florida. Combined with spending a 184 days a year outside New York these simple procedures will save me over $5 million in NY taxes annually.

That savings doesn’t include that Florida has a 6% sales tax compared to NY’s 8% or more. Florida has lower utility taxes. Lower gasoline taxes. Or that the Florida homestead certificate guarantees my property taxes will not grow more than 3%.

By moving to Florida I can spend that money on worthy causes like better hospitals, improving education and worthy projects like the Clinton Global Initiative. Or maybe I will continue to invest that money in fighting the status quo in Albany. One thing is certain, that money will not continue to fund Albany’s bloated bureaucracy, corrupt politicians or regular handouts to the special interests.

How did we get here in the first place? It all starts with spending, spending and more spending.

BUDGET SPENDING

New York’s budget was $72.7 billion in 1999. Ten years later it has ballooned to $131.8 billion. That growth is astounding but it continues to get worse. Each year, New York’s budget has had 6% compounded growth, double the average rate of inflation (2.8%). Florida’s budget, on the other hand, went down 8% this year.

HEALTH CARE SPENDING

New York spends $2,283 per person on Medicaid. That’s the highest per capita spending in the nation and twice the national average. In the last decade the Medicaid budget has grown by 50% ($30 billion in 1999 and $45 billion in 2009). In almost every sector (hospitals, nursing homes, medicine, clinics, and home and community care) spending per recipient regularly exceeds the national average.

Faced with escalating costs and diminishing returns, Albany and their allies, the health care unions (SEIU has over 300,000 politically active members), had only one answer: increase taxes.

EDUCATION SPENDING

New York spends the most, per pupil, in America on education, spending 63% above the national average. Costs went up about 60% in the last decade ($12.7 billion in 1999 and $20.7 billion in 2009). Like health care, education is something worth spending on and worth investing in but we’re spending more and getting less. New York City schools graduated 54% of high school students in 2007. Buffalo 47% and Rochester 45%.

Why? Perhaps it’s because the New York State teachers union with its $114 million budget is always trying to convince Albany to spend more. Maybe it’s because it’s mandatory that all teachers pay union dues. Whatever the cause, when faced with potential cuts, the union and their allies have one response: increase taxes.

LOCAL GOVERNMENT SPENDING

It’s not just the state. It’s the range and breadth of many layers of governments and special taxing districts. In New York, the average state and local tax burden is $5,260 for every man, woman and child. That’s by far the highest in the country. Like Albany, when faced with a difficult problem, these municipalities have one answer: increase taxes.

Upstate New York has been particularly hard hit. Add unreasonable real estate taxes to the uncontrolled state spending and you have whole communities decimated. The assessment process is unfair, unworkable and unreasonable and the result is that 15 of the 20 highest taxed counties in America are right here in Upstate New York. While homeowners in other areas build equity, we just pay more taxes.

NO ONE’S HOME

This problem did not begin with the current recession. New York faced a $6 billion shortfall before the economic downturn. However in the face of economic turmoil Governor Paterson, Speaker Silver and Majority Leader Smith looked to the unions and special interests who answered with one voice: raise taxes.

Among other taxes and fees, they raised the marginal tax rate on the most successful (and most mobile) New Yorkers to 8.97 percent, the second highest rate in the nation.

It was irresponsible and it may just prove to be counterproductive since the top 1% of earners account for about 50% of state revenue. We’re the one who can—and will—leave.

It’s not an easy decision but I’m being forced away from my family and friends, pain shared by too many parents and grandparents in this state.

I’m leaving. And by domiciling in Florida I will personally save $13,800 every single day. That’s a pretty strong incentive.

Like I said, I love New York but I’m not going to pay any more for the waste, corruption and inefficiency that is New York State government.

Recently, the Town of Irondequoit (here in Monroe County) held a referendum.

Reacting to the Irondequoit vote, The Democrat & Chronicle headline read: Irondequoit Vote Evidence of People Power: Vote Shows Citizens Can Fight New Spending. 

Read the whole article HERE.

What are your thoughts on property taxes?  What do YOU think can be done?  Please share your thoughts and ideas.

The Rochester Democrat & Chronicle joined me in supporting Andrew Cuomo’s plan to empower municipalities to consolidate.

From the editorial:

     “The more than 600 layers of government in Monroe County are among the most in any single county in New York state. No wonder the county also has some of the highest local taxes in the nation.”

In already overtaxed New York, our legislative leaders are talking about raising taxes again and lying about it.

Some legislators are pushing a so-called “Millionaires Tax”.  There is only one thing, this “Millionaires Tax” would apply to any household with an income of $250,000 a year.

Setting aside the deception of the name, I have two major problems with this:

1. Taxing upper-income people will dissuade corporate executives from wanting to stay in New York and cause more companies to leave.  Every time New York raises taxes, a corresponding number of Fortune 500 companies have left our state and our well earned reputation for high taxes makes it nearly impossible to recruit other major companies to replace them.  
2. These taxes will end up hurting our local charities.   James Tilley, chairman-elect of the United Way of Buffalo and Erie County said in the Buffalo News: “My sense is that private industry as well as charitable organizations will fare better if individuals are allowed to determine where they want their money to go, which is another way of saying I think lower tax rates are better.”

Fairness is just an excuse to take from one group of people and spread it to another.

You can read a recent article about this tax HERE.

Yesterday the Buffalo News joined me in supporting Attorney General Andrew Cuomo’s efforts to help, foster and promote consolidation.  Two important points:

• Consolidation is, “one way to cut the cost of governing New York enough that people can still afford to live here.” 
• “[Cuomo] wants new laws giving lower levels of government, and the people, the power to take consolidation steps they can’t take now.”

Cuomo’s plan would update New York’s confusing and Byzantine rules for consolidation while still maintaining Home rule for local governments.  The proposed legislation would:

• Allow each county’s executive to order a study and consolidation plan for local governments followed by a county wide vote on the plan.
• Empower local governments to cooperate, merge or dissolve.
• Give local citizens the ability to force cooperation, merger or dissolution via a petition process.

As the News points out, special districts cost tax payers more than $100 billion a year.  That’s simply more than New Yorkers can afford.

Read the Buffalo News Editorial HERE.

See AG Cuomo’s plan HERE.

Upstate New York pays the highest property taxes in the county. That’s not news to any of us who pay taxes here.

The surprise is that our property taxes are significantly—and disproportionately—higher than those paid by in other parts of the state.

As a result, the price we pay goes beyond the dollars and cents and hurts our communities, our families and our economy.

According to the New York State Comptroller’s Office, property taxes on a home in Rochester valued at $100,000 are just under $4,000. Taxes on a $100,000 home in Yonkers (Westchester County) are less than half that ($1,773) while in South Hampton (Suffolk County) they are almost a tenth of that ($456).

The result is a competitive disadvantage or a “property tax surcharge” felt in every part of our lives:

• Community: The exorbitant taxes discourage homeownership, one of the keys to a successful and stable community.

• Seniors: High property taxes make it hard—and too often impossible—for people on fixed incomes, like many seniors, to stay in their homes.

• Economy: To business leaders our property tax burden is like a big red sign that proclaims: Go Away! Consider a large company in the service industry considering relocating. They calculate the cost to live for themselves and their employees and are forced to look elsewhere. Or a large manufacturing company. They add up the taxes on the headquarters, the manufacturing plant, the warehouses, parking lots and so on and the property taxes on all that land too often sends them elsewhere.

The most insidious part is that high property taxes contribute to a never ending cycle: as the taxes go up, property values go down. As property values go down local governments raise property taxes to maintain revenue. As taxes go up . . .

Unfortunately, as you know all too well, our staggering property tax burden is on top of an already high personal income tax and some of the highest sales taxes in the nation.

Identifying the problems high property taxes cause, and this striking upstate/downstate disparity, is only the first step. The problem has many causes and has been years in the making and, candidly, may take years to solve.

I hope you have signed our petition demanding relief.  Please join our discussion on how to solve this problem by telling us what you think. Excelsior!

[Originally appeared in Rochester Democrat & Chronicle, February 8, 2009]

I founded Responsible New York to help reform our great state but the reform we need didn’t start with me and it most certainly doesn’t end with me.

Reform can—and must—come from you.

Reform will only happen when enough New Yorker’s say they’ve had enough and when enough New Yorkers are fed up enough to finally do something about it.

Over the next few months you will see many changes in this website. These changes are intended to bring you (and your friends and family and neighbors) into the process and create a genuine conversation about how we can work together to renew New York. Individually, we are too often ignored by our state leaders. Together, our voices are louder than any special interest and, perhaps, if enough of us speak together we will not be ignored.

I hope you will join me.

                      -Tom