Zoharan Mamdani’s primary victory and proposal to increase taxes over millionaires in the race for the Mayor of New York City has touched the possibility of a new wave of money flight from the city. As of now, there are very few evidence of recession in high-ended real estate or real money loss in New York.
Florida real estate brokers say they have seen an increase in interrogation to go to Miami or Palm between New York Amir. Business owners are threatening to leave the city or near. And New York Developers, caught in Crosshair of Mamdani’s rent control platform, have been banded together to fund Mamdani in the November general election.
At the center of economic concern is the so -called “millionaire tax” of the case. He has proposed an additional 2% tax on New Yorkers, which earns more than $ 1 million per year. The city’s current top rate combined with 3.876%, tax joint New York City and State Tax will bring up to 16.776%, which is the highest in the country. The joint federal, state and city rate will be 53.776%.
And high -grossers of New York will not have to go to Florida to avoid tax. They can simply go to neighboring Long Island or Westchester County or even New Jersey. Unlike the state of New York, New York City cannot tax those who work in the city, but their primary residence is elsewhere.
“New York City can only tax its inhabitants,” said Jered Valakzak, vice -president of state projects at the Tax Foundation. “A high earner does not need to leave the city facility, they just need to go out of five boro. Migration is the easiest in the city lines.”
As a gesture of Zoharan Mamdani, he speaks during a watch party for his primary election, including his dialect to become a Democratic candidate for the Mayor of New York City in the upcoming November 2025 election in New York City, US, June 25, 2025.
David Delgado | Roots
Importantly, Mamdani will not be able to increase income tax. The city’s income tax rates have been determined by Albani, where the village Kathy Hachul has said that it will block any tax growth. “I don’t want to lose any more people in Palm Beach,” Hocul Told New York Post.
Critics also fear that the policies of police and public safety may make the city even more dangerous, many businesses may become the ultimate straw for owners and top earning people who were already considering quit. The top 1% of New Yorkers pay more than 40% of the income tax, so losing even in high number will set a spiral on the lower revenue and low services and more out-migration.
According to data from the Tax Foundation and IRS, the New York -adjusted income to the state of New York had a net deficit of $ 14 billion due to leaving taxpayers between 2021 and 2022. According to data from New York City Comptroller, the city’s revenue from individual income taxes declined from $ 16.7 billion to $ 14 billion in 2022 and 2024 between 2022 and 2024-although they are still above the east-covered level of $ 13.4 billion in 2019.
At the same time, however, there are indications that New York’s powerful money machine is continuously filling the rank of millionaires and billionaires, which is more than making for the rich going out. According to Ultrata, the number of millionaires in the city of New York has exceeded double in the last decade – despite the Kovid deficit – more than 2.4 million. According to Ultrata, now more than 33,000 New Yorkers are worth $ 30 million or more, which are almost double the Miami. Whether it is measuring millionaires, the city of New York has maintained its dominance as the richest wealth center in the world.
A report by Ultrata and Realum states, “New York remains a powerful magnet for rich people, which is a mixture of luxury consumption, vibrant culture, high quality education and lifestyle casets with boro of ultra-prime real estate with boro of manhattan.”
The demand for expensive luxury apartments in New York also shows no signs of slowing down even after the victory of Mamdani in primary on 24 June. According to Olshan Realty, 64 contracts were signed between June 23 and July 13 for apartments priced more than $ 4 million compared to last year, with a total sales of over $ 555 million in sales. The signed contracts were $ 35 million, the spread of a three-bedroom on the fifth Avenue which was first listed in December.
Donna Olshan of Olshan Realty said, “The luxury market is at the speed for one of its best years,” said Olshan Realty’s Donna Olshan, who also warned that any possible mamdani -related weakness could be seen in the decline.
Not only did New York’s millionaire and billionaire population rebound quickly after Kovid, but also high -grossing the high -earnings. While the city lost 5,000 pure houses earning $ 1 million or more during the epidemic, their rank increased from 30,400 to 34,127 in 2022 in 2019, which is available according to the Fiscal Policy Institute.
Nathan Gusardorf, Executive Director of the Fiscal Policy Institute, said that the story of the wealth flight from New York was fed by the media in part by the media, which highlights a small number of high-profile billions going from New York to Florida to Florida. Stories about billionaires such as Josh Harris, Carl Ikhan and Daniel Och ignore the flow of wide eb and wealth in Dicamping New York in Florida. The powerful economy of New York fuel by the financial services industry continues to produce more new millionaires than losing.
“We do not have a certain population of millionaires that whenever one of them leaves, the bus falls,” said Gusardorf. “The city revives the millionaire population.”
Even if Mammadani was to win Mayorship in November and increase taxes, the direct impact on wealth flight may be more limited than many expectations. According to the latest research by the fiscal policy center, the top 1% of the new Yorkers by income (which make more than $ 800,000 per year) leave the city at the rate of all other income groups in a quarter. When New York rich people walk, they most often join other high-tax states such as New Jersey, Connecticut or California-suggest lifestyle rather than taxes.
“A strong indication of the fact is that high tax rates at the state level on top earners are not having real behavioral effects,” Gusadorf said.
However, other people say that taxes have given importance to rich people, in recent years, less than high-tax or no-tax States such as Florida and Texas are proven by the steps of a wider population.
A study by the California Center for Jobs and the Economy described a net loss of $ 5.3 billion in Taxodus, or individual income tax, from high -earnings, who left after the expansion of high taxes on rich in 2016.
“High tax rates flow and low income increases,” said Valakzak.
