The Difference

When the Census Bureau releases its latest population estimates on Monday, demographers expect that Florida and New York will be narrowly separated — perhaps by as little as a few thousand people — and that if Florida does not pass New York this time, it almost certainly will do so in 2014. 

NY Times Dec. 26, 2013

When this news came out recently it did not immediately hit me with the potential significant opportunity it presented, but it has now, I'll explain in a bit.

Have you ever watched a commercial that just irritated you?  I'm sure you have most people watch  commercials that rub you wrong way.  For the past few months there has been a commercial playing regularly here in Florida, I do not know if it is national or not I suspect it is, put out by the State of New York.

The commercial is part of Governor Cuomo's  Start-Up NY  campaign to entice businesses to move to New York.  They are doing this by creating "tax free zones" for  businesses in special "zones" in the state for ten years.  So if you are a business, the idea is that you will move to a "zone" of New York in order to enjoy 10 years without any state  taxes.

There are a lot of strings attached and regulatory obligations involved in the much touted program, which is spending millions of tax payer's money on the add campaign which will be a total boondoggle.

There is a reason people and businesses move out of their home states such as New York to states like Florida and it is not just the weather, it has to do with the old adage that "capital goes where it is wanted."  People move their money and themselves where it is protected.

But what irritates me about the StartUp NY commercials is not that I know the whole enterprise is doomed to fail, it is the hypocrisy.  There is no bluer" state than New York, they just elected a socialist mayor of New York for goodness sake!  Andrew Cuomo despite any electioneering spin to the contrary is a dyed in the wool old fashioned tax and spend liberal who fervently believes in big government. So what does this bluest of blue states, run by the bluest of blue politicians do to try to attract businesses back into their lair?  They cut taxes for evil businesses.

This is why the fact that these two states Florida and New York having virtually identical populations is such an opportunity, a very liberal blue state compared to a conservative red state. Every statewide elected official in New York is a Democrat while every state wide elected official except one in Florida is a Republican. New York's congressional delegation is 21-6 Democrat over Republican while Florida's delegation is 17-10 Republican over Democrat.  The governor and both houses of the legislature in New York is Democrat, the Governor and both house of the legislature in Florida is Republican.

So let's compare two states with the same population but with opposing political philosophies.

 Florida has a corporate tax rate of  between 0 and 5%.  New York has a corporate rate of 0 to 7.1%.

Florida has no state income taxes at all-for anyone, New York's state income tax rate starts at 4% for an individual making over $7500 and a couple making $15,000 and rises to a maximum of 8.82% for individuals making $1,029,250 or couples making $2,058,550.

Florida has a state sales tax of 6%,  New York has a sales tax is 4%.

The average Florida homeowner pays 3.31 % of their income in property taxes 18th highest in the nation. The average New York home owner pays 5.02% of their income in property taxes the 6th highest in the nation.

The median house price in Florida is $182,400 -23rd highest in the nation. The median house price in New York is $306,000-4th highest in the nation.

The 2011-2012 two year average median household income in Florida is $46,059 down from 47,566 in the 2009-2010 average a 3.2% decrease. The 2011-2012 two year average median household income in New York is $$49,687 down from $53,062 in the 2009-2010 average, a decrease 6.4 %.

As of December 2013, Florida had an unemployment rate of 6.2% tied with three other states for 22nd highest (below the national average). New York had an unemployment rate of 7.1% which was 36th highest in the nation
(above the national average).

Here is where we really see the differences in political philosophy.  Remember these two states now have virtually the same population

2013 State Budget

Florida 69.9 Billion,  New York 132.6 billion

State Debt

Florida- $134,900,802,000 / Each citizen's share $7,078.60.-

New York -$305,308,390,000/ Each citizen's share $15,415.52


The final category is the one the liberals love to point out without ever putting it in context and that is federal aid to the states. Liberals love to point to studies which show that "red" states depend on Federal Aid far more than "Blue" states.  However the data they use is based on the percentage of a states general revenue budget which is made up of federal aid. So the higher your budget is (the bigger the government is), the less the percentage will be

Consider that as you realize that Florida's budget is 69.9 billion while New York's budget is 132.6 billion.  Even if both states received the exact same amount in federal aid the percentage Florida receives would be far more than New York receives. But even using that deceptive way of calculating federal aid Florida receives 36.9% of its budget from federal aide which is the 23rd most of any state while New York receives 40.4% of its much more massive budget from federal aide which is 10th highest of any state!

If, however, you calculate federal aid on a per capita basis which is a much more objective way of looking at the issue, it is even more dramatic.  Florida's per capita federal aid  is $901.87 per citizen which ranks 48th in the nation.  New York which remember is exactly the same size as Florida receives  $2301.14 per citizen in federal aid which is 4th most in the nation, following Alaska (3), Vermont (2), and The District of Columbia (1).

Florida does not mooch off the rest of the nation, New York certainly does.

If the federal government ever makes one "fair" change to the tax code the migration from blue to red states will be a flood.  If they ever eliminate the federal deduction on state taxes, blue states will either turn red or they will lose half their citizens, the half who are not on state or federal aid.

This in a rather large nutshell is a major reason why there is such political polarization in America today, two diametrically opposed views on how to govern. Tax and spend versus let people keep their own money,  One grows an economy, one stagnates it. But more important one frees people while the other puts people in bonds to government.

It is really rather simple though if New Yorkers thought they were getting their monies worth out of big government they would not be leaving and moving to Florida and other less restrictive states . It's not the weather,  its the freedom.

StartUp NY is really nothing more than liberal foolishness trying to avoid ShutDown NY.