Yesterday’s Wall Street Journal posted an article about the struggle for power in the New York State legislature and about the fact that New York State is experiencing extreme financial difficulties. 

According to the article:

“New York has been committing slow-motion economic suicide for decades. Population growth has been anemic, state and local taxes are 50% higher than the national average, and spending and debt are out of control, as are public-employee pension and health benefits. Yet the political class offers little more than soothing bromides to an angry public.”

Part of the problem is the idea that you can continually tax the wealthiest Americans and use that money to finance an increasing number of government programs.  Eventually people begin to vote with their feet and the amount of tax revenue begins to fall.

The article has six suggestions as to how New York can turn its economy around:

1.  Cut spending.  Freeze wages of public employees.

2.  Cap property taxes.

3.  Fund transportation in the state consistently.  Infrastructure repairs and upkeep need to be funded on a regular basis.

4.  Cut costs by consolidating in areas where it is possible.

5.  Revise the tax system to make it more user-friendly and less complicated.

6.  Make the legislature a part-time job with legislators forced to work in the private sector and live under the laws they pass.

These steps may begin to ease the exodus of wealthy business owners from New York that is caused by ever-increasing taxes.