Is New York Facing a Financial China Syndrome?

Jonathan Turley
October 27, 2009

[efoods]We have previously discussed the dangers of increasing taxation in places like New York city. Now it appears that the city is facing a tax-version of the China Syndrome where over-taxation may be causing wealthier families to flee, which increases the need for higher taxes on those remaining.

I remain concerned about the incredible spending in Congress and rising taxes in the states as politicians seem to have lost any sense of proportion or balance in buyouts, recovery bills, and public spending. Even the Washington Post is now warning of a “debt tsunami” as the Administration drives up the deficit — already pushed to extremes by George Bush. We are now piling on debt faster than gross domestic product and the CBO is reporting that the publicly held debt of the U.S. government will reach 82 percent of GDP by 2019 — roughly double what it was in 2008. Yet, the Administration is still piling on spending bills and new programs with enthusiastic support from the Democrats. Countries like China have been complaining for months about the disastrous spending spree in the United States and debt overload, here.

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