Is New York State trying to encourage or discourage business?
Tax man at the gates
Last Updated: 4:25 AM, March 28, 2010
Posted: March 28, 2010
Just when it seemed as if Albany had run out of ways to suffocate New York’s economy, along comes word that tax authorities are taking a stopwatch to the state’s borders.
New York, it turns out, is one of a number of cash-starved states that have decided to start enforcing long-ignored statutes declaring that nonresidents who come to town for even a single day’s work must pay taxes on the income derived from that labor.
Think business meetings, conventions and such.
And companies that fail to deduct those taxes from their employees’ paychecks — and are found out during a payroll audit — can be fined.
Workers now have to ante up 1/250th of their annual salary for each day worked in New York. And employers must cope with mountains of tax forms and weekly withholding calculations.
It’s just this sort of thing that drove Rush Limbaugh out of New York City. He’s been audited by New York City/State every year for over a decade. Limbaugh has to prove where he was every single day of the year. Limbaugh has been in Florida for a long time, but he had a property and a satellite office in New York City. Now, Limbaugh loathes to enter New York at all, for any reason.
New York City depends on the convention business. Did anyone think what this does to the convention business? You’re visiting New York City for a day or two, spending money on an expensive hotel room, expensive restaurants and such, and now you have to fill out both New York State and New York City personal income taxes? Who needs that? Hold your next convention in Texas or the Virgin Islands!
Suppose you’re an author on a 20-city book tour. Will you have to file income tax forms in 20 different states that you visited for just a day?
New York has city (NYC) and state (NYS) personal income taxes; I left for Texas, which does not have these taxes. If you love New York, really really really love New York, and really love tax forms, then you deserve the place. Most people will try to send their business elsewhere, if possible. This is exactly what an intellectually and financially bankrupt state does.
Why send people to New York to get pecked by petty bureaucrats?