Michael Goodwin is an excellent writer, an excellent analyst…and a much-needed breath of fresh air to counter the BS that emanates from most media sources when talking about the economic disaster-in-progress befalling New York State in general, and New York City in particular.
Here are excerpts (more than I usually put up from an outside source, but too good to leave out) from his latest commentary in the New York Post:
Both the city and state governments have built a financial house of cards and are fast approaching an economic reckoning. Income-tax revenues are falling off a cliff, while hiring and spending continue to climb.
City spending has soared by some 25 percent since 2014, including a planned $3 billion hike this year — even as income-tax collections are declining by nearly $1 billion.
The state projects its income-tax collections will decline by $2.3 billion, or about 4 percent, just as politicians begin their annual budget binge. Already the state plans to spend $176 billion, an increase of nearly 4 percent.
As the late economist Herb Stein once said of such imbalances: “If something cannot go on forever, it will stop.” Yet Frick and no-Frack, Mayor de Blasio and Gov. Cuomo, show no signs of stopping, instead hoping that a tweak here and there will be enough to keep their tax-and-spend scams afloat.
De Blasio touted “cuts” to spending — despite the $3 billion projected increase! Many more “cuts” like that and the city will go bankrupt.
Despite the high spending, there is a noticeable decline in the quality of life, and the subways are falling apart. What happens when lean times come?
For his part, Cuomo continues to falsely claim that the new federal tax law is the source of Albany’s troubles. In fact, he took office in 2011 declaring “New York has no future as the tax capital of the nation.”
Eight years later, it still is, but now he latches onto a convenient scapegoat in the limit of $10,000 in state and local taxes that can be used to offset federal taxes. While the new limit surely plays a role, it can’t be responsible for the entire $2.3 billion decline in tax collections that suddenly appeared.
By one calculation, the state would have to lose 16 percent of taxpayers earning over $500,000 to reduce income taxes by that amount.
Cuomo also likes to blame cold weather for why higher-income families flee his clutches. Oh, it’s the climate all right — the high tax, anti-business climate that is making the state No. 1 in having its residents leave for other states.
If officials wanted to make New York more attractive, they would cut taxes and regulations, as Trump did in Washington with great success. Instead, Cuomo and de Blasio keep piling on new ones, creating more reasons to head for the exits.
I was never a fan of Andrew Cuomo personally. I have always found him to be an egotistical loudmouth – not at all dissimilar from the way I see a certain occupant of Pennsylvania Avenue. But, at least years ago, I respected his grasp of economic reality.
These days, however, Mr. Cuomo has fallen victim to a condition overtaking so many other Democrats: overtax, overspend, and blame the consequences on Republicans.
Mayor De Blasio, by contrast, has always been where Cuomo now is, and is getting worse by the day. God help him: a few more years of this and he’ll be in Alexandria Ocasio-Cortez territory.
New York State is crumbling, largely because of these two. And, as befits their partisan, compromised status, most media refuse to talk about it…
…which is why Michael Goodwin is owed a major thank you.
Thank you, Mr. Goodwin.