Updated
Updated · Fox News · Jul 15
Hochul Rejects Higher Taxes on New York’s Wealthy After 12.7% to 8.7% Millionaire Share Drop
Updated
Updated · Fox News · Jul 15

Hochul Rejects Higher Taxes on New York’s Wealthy After 12.7% to 8.7% Millionaire Share Drop

3 articles · Updated · Fox News · Jul 15

Summary

  • New York Gov. Kathy Hochul said she opposes raising taxes on high-net-worth residents and companies after being pressed over a study showing the city’s share of U.S. millionaires fell sharply.
  • The Citizens Budget Commission said New York’s millionaire share dropped from 12.7% to 8.7% between 2010 and 2022, a decline it estimated cost the state roughly $10.7 billion in 2022 income-tax revenue.
  • Hochul argued the exodus was driven mainly by the federal cap on state and local tax deductions and by the COVID-19 pandemic, when some affluent residents shifted permanently to places like Palm Beach.
  • She contrasted her approach with calls to 'tax the rich,' saying she wants to 'expand the pie' and keep businesses and wealthy taxpayers from leaving as New York City faces budget strain.
  • Asked about a proposed pied-a-terre tax and slow sales of $10 million-plus apartments, Hochul said the levy should target nonresident owners of $5 million second homes, not primary New Yorkers.

Insights

Now that New York's tax on luxury second homes is active, will it raise revenue or just accelerate the exodus?
Is New York's reliance on tax breaks for large firms sustainable, or does it mask deeper economic vulnerabilities?
As AI threatens New York's key industries, can the city's economy adapt without its wealthiest taxpayers?