New York's Millionaire Exodus: State Lost Nearly $11 Billion in Tax Revenue, Analysis Claims

New York's Millionaire Exodus: State Lost Nearly $11 Billion in Tax Revenue, Analysis Claims

New York's shrinking share of America's millionaire population is raising fresh questions about the long-term impact of tax policy and economic competitiveness.

A new analysis estimates that the Empire State missed out on approximately $10.7 billion in personal income tax revenue in 2022 after its share of the nation's millionaires declined from 12.7% in 2010 to 8.7% in 2022—the largest drop of any U.S. state.

The findings have fueled debate as New York City Mayor Zohran Mamdani continues to advocate for higher taxes on wealthy residents to help fund public services. Critics argue that increasing taxes could encourage more high-income earners and businesses to relocate, further shrinking the state's tax base. Supporters, meanwhile, contend that higher taxes on the wealthy are necessary to invest in housing, education, transportation, and other essential services.

The report argues that if New York had maintained its previous share of U.S. millionaires, billions of dollars in additional tax revenue could have been available for state priorities.

As policymakers weigh the state's fiscal future, the debate over whether higher taxes attract greater public investment or accelerate the migration of wealthy taxpayers is likely to remain at the center of New York politics.

>>> What do you think? Should states raise taxes on the wealthy to fund public services, or lower taxes to retain high-income residents and businesses? Share your thoughts in the comments below.