RUSH: Now, let’s see. In New York, they’ve been going back and forth at the state level on budgets. They are over-budget. They have a deficit in the double-digit billions, and they’ve been going back and forth in the State Assembly in New York over whether to raise taxes. They finally decided to do it over the weekend. ‘Personal income taxes for the upper-middle class and the rich are about to skyrocket under a secret deal reached last night by Governor Paterson and the leaders of the legislature. It’s a two-tier tax plan.’ You heard about this, Snerdley? ‘It’s a two-tier tax plan. They say it’s going to bring in $4 billion annually…’ I’ll bet you that it does not come close to bringing in $4 billion annually. How’s it going to do this? ‘…in part by raising income taxes 31% for all New Yorkers making more than $500,000 a year.
Now, remember Mayor Bloomberg, who opposed this at one point — I don’t know where he stands on it now, but Mayor Bloomberg way back — said (summarized), ‘Look, we got eight million people that live here, there are 40 or 50,000 taxpayers — families, what have you — that pay so much in tax that they essentially support the city — and if they start to leave, we’ve got a big problem.’ He said, ‘Even if 5,000 of them leave, we’ve got a huge problem. We just can’t run out there and keep raising taxes on the rich.’ The governor, Mr. Paterson, didn’t hear him. ‘It’s not just people earning over $500,000 a year that are going to get hit. A lower-tier tax increase would increase taxes by 14-1/2 percent for single people between 250 and $500,000 a year, and for married and joint filers earning 300,000 to 500,000. Taxpayers now hit the current top rate of 6.85% when their incomes reach $65,000. The Paterson plan would tax top-tier earners at 8.97%, the second-tier earners at 7.85%.
‘This is just one of the elements of a $121 billion spending deal that the governor and legislative leaders forged in secret in a race to make the April 1st budget deadline. A lot of other taxes and fees, including expanding the deposit law to include plastic water bottles.’ The tax on tobacco is skyrocketing. Now it will be up over a dollar a pack. That happens also in April. But I want you to see if you can follow something here. They’re going to raise taxes on all these people — dramatically, 31% in New York State — who earn over $500,000 a year. At the same time, the Obama administration is moving directly against one of the industries that pays people that much to limit their bonuses, to limit their salaries, to limit how much they can be paid, and to limit how they can run their businesses. So if the Obama administration succeeds in reducing salary — they want a $1 million cap on these people, a salary cap.
I’m telling you, these people have been paying a lot of tax freight. There is no way Governor Paterson’s going to raise $4 billion a year on this. Because, folks, it’s axiomatic: when you raise taxes on an activity, you reduce that activity. People start doing that activity less. In this case: working. When you reduce taxes on an activity, then that activity increases. When you reduce taxes on income, people start working harder to earn more. Governor Paterson needs to cut taxes on people. He needs to spur investment. He needs to get people going and working. It’s just the exact opposite. Governor Paterson is like most other liberal Democrats: zero-sum game. The economy is a pie. It never grows. Somebody gets their slice; somebody gets their slice.
If somebody’s slice is bigger than somebody else’s it means that somebody else is being cheated. So we gotta even this out. Obama looks at it the same way. So massive tax increases in New York — and, of course, in New York City. And over all spending in New York will go up over 9%, almost 9%, overly spending will go up almost 9% while tax increases go up like 31% to a little over 8% in New York for the ‘super rich.’ (interruption) I don’t know what the breaking point in New York is, Mr. Snerdley when people leave. (snorts) I’m leaving. I’m leaving. I am seriously… See, ladies and gentlemen, I would love to tell this story. I don’t think I should. I don’t think I should get personal, but I would love to tell my tax audit story of New York State and New York City since 1997. It happens every year, but that’s not the point. I have to prove 14 different ways where I am every day of the year. I have to prove 14 different ways, ’cause I pay New York state and city tax on a per diem.
When I am there working I pay whatever, you know, my rate is based on income for that day in New York. And I try to go as little as possible. If it weren’t for hurricanes down here, I would never go up there. New York is the escape valve in case hurricanes are showing up in our area, because of the loss of electricity. So I’ll tell you what I’m going to do. I’m going to look for an alternative studio somewhere outside New York, perhaps Texas — another no-income-tax state — and I’m going to get the hell over there, when a hurricane starts coming our way, ’cause I told Mayor Bloomberg: I’ll be the first to lead the way. You know, this is just… I’ll sell my apartment. I’ll sell my condominium. I’m going to get out of there totally, ’cause this is just absurd, and it’s ridiculous — and it isn’t going to work. It’s punishing the achievers for the mistakes and the lack of discipline on the part of a bunch of corrupt politicians that have run that city and state into the ground for I don’t know how many years — and I, for one, am not going to take the blame for it.
BREAK TRANSCRIPT
RUSH: Well, I announced that I was officially vacating New York after these stupid, punitive, massive tax increases, and basically I go to New York now for hurricane relief, whenever a hurricane hits. No other reason to go there. Well, sometimes I visit the overrated staff, but it would be cheaper to fly the staff down here to visit me than to pay these stupid tax increases! Anyway, the point is that I have affiliates from all over the fruited plain now offering their studios as a hurricane relocation location. Well, we’re not going to go to Hawaii, that’s certainly not a no-income tax state, either. We’re not going to California. We’re not going anywhere that pays massive taxes and they audit people left and right. That is a no go. Besides, if we did Hawaii, Dawn, the show would start at six a.m. I’d have to get up at midnight for show prep. I love Hawaii, now, don’t misunderstand, but for me Hawaii is not for work.
Greetings, my friends, welcome, great to have you back, Rush Limbaugh, the EIB Network and the Limbaugh Institute for Advanced Conservative Studies. Telephone number is 800-282-2882. The e-mail address, ElRushbo@eibnet.com.
Speaking of New York, I tell you, Governor Paterson, you need to come up with a new slogan for New York: ‘New York: It’s Never Enough.’ New York takes in billions with its lottery, billions more with the tobacco settlement of years ago, billions and billions more with their share of the Porkulus bill. And it’s still not enough. And that’s the liberal capital of the world. People ask, ‘How often do you go to New York now?’ As little as I can get away with. I think last year I was there a total of 15 working days. I go up to see the staff at Christmastime. New York is probably going to celebrate that I’m not going to come back, and I know Snerdley. They hate me, so they’re happy I’m not coming back. They’re going to praise Paterson for driving me out, even though I am rarely there anyway. Or, instead of a slogan, like: ‘New York: It’s Never Enough,’ the I love New York campaigns, ‘You May Love New York, But New York Doesn’t Like You.’ That ought to be another slogan that Governor Paterson ought to employ. It’s not a surprise. It’s a no-brainer that they did this. This is what liberals do. They spend everybody into oblivion. They blame the rich for not paying enough, and they raise taxes on them. And they decrease the activity that generates the tax revenue. There are going to be others that are going to get out of there, especially in this economy.
New York’s not exactly in the midst of a boom recovery. Every state in this country is in its own version of recession one way or another.