Sky‑High Taxes Are Squeezing New York’s Future

It’s hard to argue that New York’s tax bills aren’t already a problem. Even without any fresh hikes on the horizon, the taxes in place are slowly chipping away at the Empire State’s economic health.

That point became crystal‑clear when the Citizens Budget Commission released its latest numbers. The report shows New York’s slice of the nation’s millionaire pie has dropped dramatically – from 12.7 % in 2010 to just 8.7 % in 2022. In plain English, the state is losing roughly $11 billion a year in potential tax revenue.

Why the slide? Part of it is simple out‑migration: high‑earning individuals are packing up and heading for states that promise a lighter fiscal touch. Florida and Texas, for example, are seeing their share of millionaires climb as New York’s falls.

But it’s not just about people leaving. New York is also failing to attract the next generation of wealth‑creators. Entrepreneurs and tech firms are choosing to set up shop where they won’t be hit with “tax‑on‑everything” policies.

Wall Street’s dominance is still real, but even that is eroding. The finance industry is spreading out, and new venues like the Texas Stock Exchange are becoming legitimate alternatives. When the financial hub itself starts looking less like a monopoly, the tax revenue that used to pour into Albany dries up.

And the impact is more than just a number on a spreadsheet. High‑earners contribute about 45 % of the state’s income‑tax intake. Their departure means a smaller tax base, which forces Albany to raise rates on everyone else instead of trimming the bloated spending that shuttles cash straight to the political class.

The bottom line is sobering: unless New York slashes its tax rates – and does it quickly – ordinary workers and small business owners will feel the squeeze. The state’s future, once buoyed by a robust pool of wealth, is now hanging by the frayed threads of an over‑taxed economy.