More than 700 millionaires fled New York in the first year of the pandemic after hiked tax rate

New York has lost a large portion of its millionaires as a result of the COVID-19 pandemic, new data from the Internal Revenue Service shows.

The statistics reviewed by EJ McMahon of the Empire Center for Public Policy are likely to add to the ongoing debate about the relative tax-unfriendly status of New York, especially when it comes to high-income individuals.

McMahon claimed the data showed a 1.3 percent drop in the number of New Yorkers with adjusted annual gross incomes of more than $1 million.

It comes as smart states like New York and California see a mass exodus amid soaring home prices and rampant crime.

New York state is stripping million-dollar earners as once-Empire state residents flee to more tax-friendly environs

NYC Mayor Eric Adams has said he’d like to keep top earners in the Big Apple, but hasn’t proposed any policies that would provide an incentive for them to stay.

The exact figure fell from 54,370 to 55,100 – 730 individuals, while the national number rose from 554,340 to 608,549 – an increase of almost 10 percent.

Taxes may not be the only reason wealthy New Yorkers fled the Empire State during COVID, but it’s at least a scary one and not something that should be ignored by state government, McMahon said.

“It’s absurd to deny that it’s not one of the main determinants,” he told the Union-Sun & Journal. “And it’s the variable that state government controls.”

In 2010, he said, New York state had 12.7 percent of the income of the nation’s millionaires.

This was the year officials elected the famous millionaire’s tax, which was supposed to be a temporary higher tax rate for those earning more than a million dollars.

Those taxes only increased during the years Andrew Cuomo governed the state and have not decreased since his administration came to an abrupt end prompted by a report about Cuomo’s pattern of sexually harassing women in his orbit.

By 2019, the state’s share of million dollar earners had dipped below 10 percent and fell from 2020 to 8.9 percent.

This $150 million Hamptons mansion has been on the market for years without selling — the owner says she prefers to spend the summer outside of New York.

These stunning properties are exactly where million dollar earners can live with their families before choosing to leave for better tax havens

Fewer top earners in New York state means more unfilled $250 million Manhattan condos — like this one at the iconic Central Park Tower.

One Democratic leader, however, who says he is trying to keep the nation’s wealthy in New York is Mayor Eric Adams.

At a recent breakfast of corporate leaders, Adams said he was tired of the ‘tax the rich’ policies favored by the progressive wing of his party.

‘It blows my mind when I hear, ‘What if they leave?’ No, you leave!’ he roared. “I want my high income earners here.”

Adams has not, at this time, proposed a plan to cut taxes for wealthy New Yorkers — or anyone else.

New York experienced the largest population decline of any US state this year — losing 0.9 percent of its residents, according to new Census Bureau data.

Tax- and crime-burdened California has also driven away hundreds of thousands of residents.

The Cuomo administration supported and continued the so-called millionaire’s tax, which furthered the state’s fiscal support by taxing the highest earners higher.

The grand larceny crisis has gotten so bad that Mayor Eric Adams held a summit with business leaders at Gracie Mansion earlier this month.

New York and California have each lost more than half a million people since 2020

Manhattan’s tourist-packed neighborhoods have increasingly become hotbeds of crime – where brazen thieves are leaving shopkeepers feeling helpless

Since April 2020, New York has lost half a million people. Its current population was recorded as 19,677,151, making it the fourth most populous state behind California, Texas, and Florida.

In California, where massive wildfires and treacherous mudslides threaten homes once a year, the population has also decreased by just over 508,000 since 2020.

California Department of Finance deputy director of external affairs HD Palmer told the Sacramento Bee that the Golden State’s shrinking population is a reflection of its ongoing housing affordability crisis.

“If you talk to demographers, they will say that one of the factors is the cost of housing. And this has continued to be a challenging issue for the state,” he said.

According to the Bee, in Sacramento — where the median household income in 2021 was $71,047 — it takes a household salary of about $145,000 to afford the median home in the region.

In New York, where crime and rents are rising, the mass exodus continues.

Manhattan rents hit new unfathomable levels in 2022, forcing many residents of the concrete jungle to hand over outrageous sums every month for less than generous digs

Crime in New York has increased dramatically since 2020, as homelessness increases and the city continues to be governed by parole laws that allow criminals to be released from custody immediately after arrest.

In January 2020, New York State introduced sweeping criminal justice legislation that eliminated cash bail for most misdemeanors and non-violent crimes, including robbery.

New York, where the median rent is now more than $5,200 a month, lost more residents than any other state between April 1, 2020, and July 1, 2021, many of whom left due to a set of pandemic restrictions and high taxes. for friendlier business environments. , according to MarketWatch.

America’s population grew by 0.4 percent — but that’s not just because there were more births than deaths.

“There was a significant increase in population growth last year compared to last year’s historically low growth,” said Kristie Wilder, a demographer at the Census Bureau.

“A rebound in net international migration, coupled with the largest year-on-year increase in total births since 2007, is behind this increase,” she added.

Florida and Texas continue to see the largest population growth of any other US state.

The Lone Star State has gained close to 900,000 new Texans since 2020, and Florida has just over 700,000 new official residents — a population increase of nearly 2 percent.

Texas crossed the 30 million mark in 2022 and as such has joined California as the only state with a resident population of more than 30 million.

Wilder noted that while Florida “has often been among the states with the largest gains, this was the first time since 1957 that Florida has been the state with the largest percentage of population growth.”

Crime in Manhattan increased by 23.5 percent in 2022, while robberies, rapes and felony assaults all increased — though murders and shootings both decreased by double digits.

Grand thefts — or thefts of more than $1,000 — rose more than 60 percent in New York City this year.

The issue has become so important that Mayor Eric Adams held a meeting with business leaders at Gracie Mansion earlier this month to address it — though a solution remains a long way off as the city heads into the New Year.