Overview
- A Citizens Budget Commission analysis published this week found New York’s share of U.S. millionaires fell from 12.7% to 8.7% between 2019 and 2022 and estimated the loss cost the state about $10.7 billion in personal income tax revenue for 2022.
- New York State Comptroller Thomas DiNapoli reported continued net out-migration in 2024 with a loss of 13,662 taxpayers concentrated among married households earning $100,000–$500,000 and higher earners, signaling that middle- and upper-middle-income filers are also leaving.
- Governor Kathy Hochul responded by pointing to the federal limit on the SALT deduction and COVID-era relocations as key drivers and said she opposes raising taxes on high-net-worth individuals while seeking other ways to grow the economy.
- Political voices split sharply: critics blame local progressive tax pledges, including Mayor Zohran Mamdani’s proposals, while other commentators and outlets frame policy tools such as a pied-à-terre tax or wealth taxes as possible but contentious revenue options.
- State actions and markets are already shifting, with a statewide data center moratorium announced and signs of weakness in the ultra‑luxury housing market, which could reduce future investment and leave lawmakers facing tradeoffs between revenue and competitiveness.