More Wealth Redistribution Pain for New York Taxpayers
The state of New York loves taxes. It is also following closely in the footsteps of our federal government in using the income tax system to directly transfer wealth from one group of taxpayers to another.
According to this New York Times article, the State of New York Mortgage Agency has decided that the one-time federal first-time home buyer tax credit is not generous enough. So it has decided to extend a permanent state income tax credit to low-income first-time home buyers. (These are the folks who probably should not be purchasing a house anyway, if they need tax credits to afford it.) The amount of the credit is 20% of the annual interest payments.
By the way, the income limits to participate are not exactly at poverty levels: If you live in New York City, you can qualify for the credit if your combined income in a household with three or more people does not exceed $107,520. The cost of the house cannot exceed $637,640. In Nassau and Suffolk Counties on Long Island the income threshold is $142,520 for homes with three or more people. What?
Here’s an idea – why not give those folks a nice moving incentive credit so that they can relocate to a state with a substantially lower cost of living, starting with no state income tax? Doesn’t that make more sense than further enslaving all state taxpayers to a failed New York economic model?
Oh well – enough hostile sympathy from Mr. ToughMoneyLove. On to the personal finance carnivals for the week that you should take a look at:
Carnival of Personal Finance hosted by Christian Personal Finance.
Carnival of Pecuniary Delights hosted by the FinancialNut.
Carnival of Money Stories hosted by Funny About Money.