"I would like to convey a very simple, yet heartfelt, message: Connecticut welcomes you!" [Connecticut Gov. Jodi Rell] declared in a letter to the New York Hedge Fund Roundtable. "I can assure you Connecticut has been pursuing and will continue to pursue a much more enlightened approach to job creation and retention and economic development."
Connecticut's tax rate tops out at 5 percent, while top earners in the Big Apple face a combined city-state tax of nearly 13 percent. Another plan to eliminate a tax credit for city residents would effectively result in a 6 percent hike for city residents who earn more than $500,000 a year.
"I think it's the best thing that ever happened to Connecticut," New York City Mayor Mike Bloomberg said. "I can't imagine why every hedge fund wouldn't pick up tomorrow and move. The first common-sense rule of taxation is, don't tax people that can leave. Hedge funds are a bunch of desks with terminals on them; they can be anyplace."
Attention Albany--you ever hear the saying, "Somethin's better than nothin'?" When the MTA is cutting bus and subway service, trying desperately not to close firehouses, and NYC facing an expected $4 billion deficit for FY 2010, is it really worth losing the top 0.5% earners who pay 30% of the taxes here?
Sounds like a New York State of disaster.