Wealthy New Yorkers flee Empire State leaving $11 BILLION in lost tax revenue

In recent years the Empire State has been seeing a massive decline in millionaires fueling the state's tax revenues, leading to nearly $11 billion in losses, according to a recently released study.

The study, released on Monday by the Citizen Budget Commission, comes as New Yorkers have feared that socialist New York City Mayor Zohran Mamdani is looking to raise taxes even further and drive more wealthy New Yorkers from the state.

According to the study, even before Mamdani was elected to mayor, New York's share of millionaires in the nation dropped from 12.7 percent to 8.7 percent between 2010 and 2022. According to the study, that is the largest drop among any state in the nation.

The analysis stated, “New York’s declining share of high-income taxpayers has meaningful consequences. Had New York maintained its share of the nation’s millionaires over the past decade, personal income tax collections would have been substantially higher – roughly $10.7 billion more in tax year 2022.”

Many business leaders as well as investors have warned against Mamdani's ambitions to "tax the rich" and make the wealthy pay an even greater share of the tax burden. Mamdani pressed on New York Governor Kathy Hochul to increase taxes on the wealthy in the state despite previously promising not to do so.

Although she did not raise the corporate tax rate or income taxes, New York implemented a pied-à-terre tax on high-value and non-primary residences in New York City in an attempt to get more tax revenue. Mamdani celebrated the implementation of the tax when it took place and posted footage to social media outside billionaire Ken Griffin’s $238 million Manhattan penthouse.

In reaction, Griffin threatened to pull a $6 billion midtown project over the implementation of the tax.

States like New York and California have seen an exodus in business as well. The New York Stock Exchange has set up shop in Texas even though it still has a presence in New York. Elon Musk's Tesla has become based in Texas instead of California, where the company took shape.