New York Senators Chuck Schumer and Kirsten Gillibrand are part of the Destructive Party and are perfectly willing to let President Obama take the country over the fiscal cliff, and the state of New York with it. In the Hamptons, the rich people the Destructives love to hate are already trying to sell off their property before the first of the year to avoid the looming tax hikes.
Hamptons homeowners have launched a selling spree, offering fire sale prices to get rid of their properties before higher capital gains tax rates are expected to kick in Jan. 1.
Top brokers expect more than 30 closings on big-ticket properties priced from $1 million to $25 million.
“There is a frenzy here right now,” said Enzo Morabito, a long-time Hamptons-based broker with Douglas Elliman. “People know they save money if they sell now. I have very willing sellers and hot buyers who want to take advantage of the low interest rates that might go away next year as well.”Morabito reported eight closings on transactions involving his team before New Year’s Day, including a $14.9 million estate in Water Mill and a $6.9 million mega-mansion in Bridgehampton.
“They know they lose money if they wait till next year,” he said.
Capital gains taxes are expected to rise during negotiations over the so-called “fiscal cliff” as lawmakers close a yawning budget gap. The rate may rise as high as 39% on short-term investments, but is expected to jump about 5% on long-term gains. (Read More)
Will those millionaires move to another state? (Via The Other McCain) What will that do to New York’s budget?
The New York Post highlighted some of the dire consequences if the Destructives succeed.
The consequences here may be even more dire. Remember, New York is a relatively high-income state; thus, New Yorkers already foot more than their share of the nation’s income-tax bill. In 2010, they carried 14 percent of the load, yet made up just 6 percent of the population. So they’ll be ponying up more than folks elsewhere if Obama’s rate hikes, on folks making as little as $200,000 a year, prevail.
But it’s the caps on deductions that could wind up being the worst news of all.
Start with the fact that New York taxes are among the highest in America.
Last year, Gov. Cuomo made the situation even worse by slapping top earners with yet another tax surcharge.
Yet for the moment, at least those taxes are deductible: If you’re forking over, say, a total of $15,000 to Albany and City Hall and paying the top federal rate (Obama would up it to 39.6 percent), then the deduction could save you almost $6,000. Cap it, and you’re on the hook for thousands more. (Read More)
Well, the people in New York who voted for these progressive deserve what they get. Unfortunately, not ALL of us voted for them, but we’re stuck with it anyway. Great.
Update: Be sure to see a related article at Forbes: The Blue State Suicide Pact:
Ironically the new taxes will have relatively little effect on the detested Romney uber-class, who derive most of their income from capital gains, taxed at a much lower rate. They also have access to all manner of offshore dodges. Nor will it have much impact on Silicon Valley millionaires and billionaires, or the Hollywood moguls and urban land speculators who constitute the Democratic Party’s “good rich,” and enjoy many of the same privileges as their wealthy conservative counterparts.
The people whose wallets will be drained in the new war on “the rich” are high-earning, but hardly plutocratic professionals like engineers, doctors, lawyers, small business owners and the like. Once seen as the bastion of the middle class, and exemplars of upward mobility, these people are emerging as the modern day “kulaks,” the affluent peasants ruthlessly targeted by Stalin in the early 1930s.
The ironic geography of the Democratic drive can be seen most clearly by examining the distribution of the classes now targeted by the coming purge. Thetop 10 states with the largest percentage of “rich” households under the Obama formula include true blue bastions Washington, D.C., which has the highest concentration of big earners, Connecticut, New Jersey, Maryland, Massachusetts, New York, California and Hawaii. The only historic “swing state” in the top six is Virginia, due largely to the presence of the affluent suburbs of the capital. These same states, according to the Tax Foundation, would benefit the most from an extension of the much-lambasted Bush tax cuts.
Read the whole thing. Even though I live in one of those blue states that’s going to be punished, there’s still a sense of schadenfreude.