Sound Policy? Probably not

In the article linked below, it notes that New York gets over half of its tax revenue from the top 2% of earners. Now they want to charge more tax. Like him or not Former President Trump moved his residence to FL partly to get away from the smothering taxes in NY.

Is this sound policy? No. The richest among us have the most volatile incomes so it's very hard to do a revenue forecast that is stable when you place so much weight on such a erratic source.

I actually use this scenario as a part of my test questions when I teach tax at colleges.

WSJ Article on NY Tax Increases

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