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Monday, May 1, 2023

NY's income sinks nearly $16B compared to pre-COVID as residents flee at alarming rate

 New York’s pandemic-induced exodus is killing the state’s bottom line.

The Empire State’s pool of adjusted gross income shrank by nearly $16 billion in 2021 compared to just two years ago — representing a major loss in potential tax revenue compared to pre-COVID levels, according to newly released data from the Internal Revenue Service cited by the Wall Street Journal.

The data shows New York lost a whopping $24.5 billion in state adjusted gross income in 2021 as residents relocated. That marked a major uptick from the state’s loss of $19.5 billion in 2020 and just $9 billion in 2019.

Much of that has wound up in Florida, which has seen a $10 billion windfall in 2021 stemming from newly arrived New York transplants, according to the data.

Adjusted gross income is used to help calculate how much a person owes in income tax.

“The overall income subject to tax in New York is going down because people are moving out,” said Andrew Cohen, senior manager for state and local tax group at Eisner Advisory Group, LLC.

Cohen said the overall hit to the state’s coffers is hard to gauge because residents are taxed at variable rates depending on their income. New York’s top earners are taxed at the highest rate in the nation at 10.9%.

“I’ve had a lot of clients calling about leaving New York for lower-tax states, especially Florida,” Cohen added.

NYC movers
Florida and Texas are among the states that have most benefitted from the trend.
Taidgh Barron/NY Post

New York wasn’t the only blue state hammered by outflows of income and the resulting hit to tax revenue.

California lost out on $29.1 billion in adjusted gross income in 2021 – or more than triple the state’s loss in 2019, according to the IRS data. Fleeing residents cost Illinois $10.9 billion in lost adjusted gross income in 2021, up from $8.5 billion in 2020 and $6 billion in 2019.

The largest beneficiaries of the mass exodus were states that have adopted more tax-friendly policies, such as Florida and Texas.

The Sunshine State, which does not have a state income tax, gained $39.2 billion in resident income in 2021 – an increase compared to its gain of $23.7 billion in 2020 and $17.7 billion in 2019.

Texas, another state that doesn’t levy an individual income tax, gained net inflows of $10.9 billion in adjusted gross income in 2021. The Lone Star State raked in a net gain of $6.3 billion in 2020 and $4 billion in 2019.

The shift in income is the latest indication in an ongoing exodus of New Yorkers to Florida and other low-tax havens.

Earlier this month, data from the Florida Department of Highway Safety showed that more than 10,000 New Yorkers have exchanged their licenses for the Sunshine State’s version.

NYC movers
California and Illinois also experienced major net losses of adjusted gross income.
William Farrington

The statistic is considered a solid measure of migration patterns because it indicates a long-term relocation plan.

In February, data from the Bureau of Labor statistics showed Florida had surpassed New York in total employment for the first time in 40 years.

NYC movers
New Yorkers are fleeing to lower-tax destinations.
Getty Images

Data released by the IRS late last year revealed that millionaires were leaving New York in droves – a trend that coincided with a spike in tax rates.

Tax filings indicated that the New York state residents who reported an adjusted gross income of more than $1 million fell to 54,370 in 2020 from 55,100 in 2019 — or a decline of 1.3%.

https://nypost.com/2023/05/01/new-yorks-income-sinks-nearly-16b-compared-to-pre-covid-as-residents-flee/

CHS reports $50M negative swing on income in Q1 2023

 Franklin, Tenn.-based Community Health Systems reported a net loss of $20 million in the first quarter of 2023 on operating revenues of $3.1 billion.

Those figures compare with net income of $30 million on revenues of $3.1 billion in the same period last year. 

CHS reported operating income of $210 million for the period compared with $270 million in 2022. Overall expenses were up 4 percent compared with the first quarter of 2022, totaling $2.9 billion.

CHS, which operates 79 hospitals in 15 states, affirmed recent Feb. 15 guidance for its 2023 numbers.

https://www.beckershospitalreview.com/finance/chs-reports-50m-negative-swing-on-income-in-q1-2023.html

Chelsea Clinton Comes Out In Favor Of Porn For School Kids

 by Steve Watson via Summit News,

Emma McIntyre/Variety via Getty Images/Twitter Screenshot

Bill and Hillary Clinton’s daughter Chelsea Clinton appears to have taken on a new activism project, defending attempts to force kids as young as Kindergarten age to be exposed to sexually explicit “LGBTQ+” material at school.

Clinton tweeted the following post, claiming that Republicans are trying to “ban” books and that it is harmful to children to remove material with LGBTQ+ “themes”.


As we have exhaustively covered, the truth is that no one is calling for the books to be banned, but many are calling for the books that contain pornographic images and even pedophilia themes, as well as unscientific statements about biological gender, to be removed from school libraries.

This material is not age appropriate for children.

Time for Chelsea Clinton to face some facts:

Blumenthal Calls for Action One Year After Baby Formula Shortage

 U.S. Senator Richard Blumenthal called on Congress to provide more funding for food oversight, an additional $20 million, and create ‘The Office of Food Safety,’ a separate agency from the Food and Drug Administration, to prioritize and focus solely on food.

“The FDA has fallen short of what it should be doing,” Blumenthal said, insisting that is why there has been a separate inspector general investigation into the closure of the Abbott baby formula plant in Michigan last year that caused a massive infant formula shortage across the country.

“The simple fact is we are still near crisis. We are only one plant closing away from another infant formula crisis,” said Blumenthal.

The senator went to the ‘The Diaper Bank of Connecticut’ in North Haven to make his argument and said The Diaper Bank was a source of relief for families during the formula shortage.

The Diaper Bank was able to provide formula for 3,000 babies, according to Janet Stolfi Alfano, the executive director. “There has been a little bit of improvement, but we do know that some of our families that we serve are still struggling to access formula in the quantities that they need and the brands that they need.” The Diaper Bank is also still struggling to purchase formula in bulk.

There has also been progress in making it easier for mothers to order formula through WIC and allow more varieties to qualify.

https://www.nbcconnecticut.com/news/local/calling-for-action-one-year-after-baby-formula-shortage/3023644/

Supreme Court to consider overruling Chevron doctrine

 The Supreme Court on Monday announced it will hear a case that could significantly scale back federal agencies’ authority, with major implications for the future of environmental and other regulations.

The justices next term will consider whether to overturn a decades-old precedent that grants agencies deference when Congress left ambiguity in a statute.

Named for the court’s decision in Chevron U.S.A. v. Natural Resources Defense Council, the Chevron deference has become one of the most frequently cited precedents in administrative law since the decision was first handed down in 1984.

It involves a two-step test: First, judges decide if Congress has in the statute directly spoken to the precise question at issue. If it is ambiguous, courts defer to agencies as long as their actions are based on a “permissible construction.”

Some of the high court’s conservatives have raised concern about the precedent and how it has expanded the reach of agencies’ authority.

Now, the justices will take up a case that explicitly asks them to overturn it. The high court announced the move on Monday in a brief, unsigned order — as is typical — indicating at least four justices agreed to take up the case.

Herring fishing company Loper Bright Enterprises is appealing a ruling that left in place a National Marine Fisheries Service (NMFS) regulation based on the doctrine.

The regulation requires herring fishing boats to allow a federal observer aboard to oversee operations and compensate them for their time. The company argues the regulation significantly decreases their profit margin, and the agency had no authorization to impose it.

But the U.S. Court of Appeals for the D.C. Circuit ruled in favor of the federal government, deferring to NMFS after finding that the law at issue was ambiguous.

“Nearly four decades of judicial experience with Chevron have demonstrated that courts are incapable of applying its two-step Chevron framework in a consistent manner,” attorneys for Loper Bright Enterprises wrote in court filings.

https://thehill.com/regulation/court-battles/3981417-supreme-court-to-consider-overruling-chevron-doctrine/

Biden’s plan to address migrant surge may make it worse

 The Biden administration has announced its plan for dealing with the surge in illegal border crossings that is expected when the Title 42 order is terminated on May 11. It has estimated that illegal crossings could reach as high as 18,000 a day.

The plan is supposed to reduce unlawful migration, expand lawful pathways for protection and facilitate safe, humane processing of migrants.

For instance, it will increase the availability of relief from persecution outside of the United States by establishing regional processing centers. I have been recommending this approach for more than 10 years.

The plan may reduce the number of illegal crossings, but that will depend on how it is implemented. And its emphasis on expanding legal pathways might greatly increase the number of asylum seekers, which would be a major problem for our already overwhelmed asylum system.

Here are some highlights of Biden’s plan:

Stiffer consequences: Migrants who enter illegally generally will be processed in expedited removal proceedings. If they are deported, they will be barred from reentry for five years and be presumed ineligible for asylum absent an applicable exception.

Other than the presumption of being ineligible for asylum, these aren’t new measures.  That the administration hasn’t made much use of them before makes me wonder whether it really intends to do so now. And we don’t know yet how the presumption of ineligibility will be applied.

CBP One: Migrants outside the U.S. will be able to use the CBP One mobile application to schedule an appointment to present themselves at a port of entry. This is not a new program. It is an expanded version of the CBP One program that the Trump administration established.

Asylum advocates have called CBP One a glitchy app that has failed to provide enough appointments to help the large number of desperate migrants seeking sanctuary in the U.S. The app offers about 740 appointments per day.   

Also, concerns have been raised about the app’s privacy implications. CBP’s privacy policy permits personal data collected from users to be disclosed for law enforcement purposes.

Increase the number of refugees from the Western Hemisphere: The administration will increase resources and staffing for the U.S. Refugee Admissions Program in this region. This is in addition to accepting up to 30,000 migrants per month from Venezuela, Nicaragua, Cuba and Haiti in its expanded parole program.

The increase in refugee numbers will not impact the asylum system in the United States, but the parole program could add up to 360,000 asylum seekers a year to our already overwhelmed asylum system.

Open regional processing centers across the Western Hemisphere: Migrants in the Western Hemisphere will be able to make an appointment to visit the nearest processing center for an interview with immigration specialists, and, if eligible, be processed for refugee resettlement or other lawful pathways such as parole programs, family reunification or existing labor pathways. 

My recommendation was to expand the CAM program, which screens qualified children in El Salvador, Guatemala and Honduras, to determine whether they may be eligible for refugee status with possible resettlement in the United States. The CAM program doesn’t have to be limited to children, or to those countries. It should be available to anyone who has a persecution claim, in as many countries as possible.

Increase removals of migrants here unlawfully: The administration has scaled up the number of removal flights. The plan says that illegal crossers who fail to qualify for protection should expect to be deported swiftly with at least a five-year bar to returning. 

This contradicts the administration’s prior immigration enforcement policies. Moreover, the man who will expected to enforce the new policy, Department of Homeland Security (DHS) Secretary Alejandro N. Mayorkas, has said, “The fact an individual is a removable noncitizen will not alone be the basis of an enforcement action against them.”  

Migrants in expedited removal proceedings: The administration is increasing its holding capacity for expedited removal proceedings. It also will install hundreds of phone lines and privacy booths to conduct credible fear interviews, and increase access to counsel. Moreover, it is urging U.S. Citizenship and Immigration Services (USCIS) asylum officers and immigration judges to complete immigration proceedings at the border more quickly.

The administration could have used expedited removal proceedings to a much greater extent before. In fact, it ended the previous administration’s expanded use of such proceedings.

Also, the last-in-first-out approach the plan takes benefits new arrivals, but it is unfair to asylum seekers who are already in the U.S. waiting for a chance to present their asylum claims.

Backlog crisis: The CIS Ombudsman’s Annual Report 2022 states that USCIS has a backlog of more than 430,000 affirmative asylum applications. These are applications filed by migrants who are not in removal proceedings. The applications submitted to an immigration judge in removal proceedings as a defense to deportation are referred to as “defensive” asylum applications.

The immigration court has a backlog of around 2.1 million cases. The average asylum case will take about 4.2 years to complete. And these numbers do not include the asylum seekers the administration has released into the country who haven’t yet been put in removal proceedings.

The immigration court disposed of 172,180 cases in the first four months of fiscal 2023, which puts it on track to decide nearly half a million cases this fiscal year. 

But the number of new cases being added to the court’s calendar has reached record highs too. DHS initiated 800,000 cases in removal proceedings in 2022; and it has initiated 329,380 in the first four months of fiscal year 2023.

If the administration continues to encourage asylum seekers to come here with its parole programs and lax enforcement measures, it won’t be possible to bring the asylum backlogs down to reasonable levels. Even without any new cases, the immigration court would need more than four years to eliminate its backlog.

The plan should be revised to ensure that it will reduce the backlogs in our immigration system instead of increasing them. 

Nolan Rappaport was detailed to the House Judiciary Committee as an Executive Branch Immigration Law Expert for three years. He subsequently served as an immigration counsel for the Subcommittee on Immigration, Border Security and Claims for four years. Prior to working on the Judiciary Committee, he wrote decisions for the Board of Immigration Appeals for 20 years. 

https://thehill.com/opinion/immigration/3981672-bidens-plan-to-address-migrant-surge-may-make-it-worse/