Currently, New York raises roughly $50 billion each year from state income taxes. 60% of this figure come from the highest-earning 5% of tax filers in New York.
The package proposal for the New York tax increase will hit the highest earning tax base with higher income taxes and levy a new surcharge on capital gains. The budget is due at the end of March.
A Warning, Not a Threat
The letter is a warning regarding increasing taxes as part of the state budget which may lead to a dramatic loss of businesses and high-income earners. The claim is remote-working patterns developed during the pandemic. This caused many of the top financial, real estate, and legal professionals to flee the city. Now the group, along with their companies, may be leaving forever if the proposed taxes are approved.
The executives are urging the politicians to postpone any tax increases. And revisit the issue after both the city and state have completely recovered from the techno-pandemic.
“Many members of our workforce have resettled their families in other locations, generally with far lower taxes than New York, and the proposed tax increases will make it harder to get them to return,” the executives claimed. “This is not about companies threatening to leave the state; this is simply about our people voting with their feet.”
