New York is Learning You Can't Tax the Rich Forever

The rich have enough money to move somewhere else:

This year, the deep pockets of New York's rich were tapped like never before. The state's wealthiest pay new higher income tax rates, higher taxes for limousines and yachts, more to enter a horse in a race and more to dabble in real estate.

Meanwhile, many are losing millions from the closing of business tax loopholes and those making over $1 million are losing tax deductions others get.

Now, early revenue figures suggest that taxing the wealthy more under this year's state budget may have driven away richer New Yorkers. That could make the economic comeback for the state even harder.

"You heard the mantra, 'Tax the rich, tax the rich,' " Gov. David Paterson said Wednesday at a gathering of newspaper editors at an Associated Press event in Syracuse. "We've done that. We've probably lost jobs and driven people out of the state."

"People aren't wedded to a geographic place as they once were. It's a different world," New York Lt. Gov. Richard Ravitch said.

Buffalo Sabres owner Tom Golisano, the Paychex founder and billionaire who was paying $13,000 a day in New York income taxes, and media mogul Rush Limbaugh became ex-New Yorkers this year.

Developer and New York icon Donald Trump told Fox News in April that the higher tax rates were "a total disaster for the state" and have spurred several of his millionaire pals to talk about leaving.

According to the Manhattan Institute, the wealthiest 1 percent of New Yorkers paid 41 percent of all state income taxes before the new tax rates were approved.

Those who live by taxing the rich die by taxing the rich.