The Independent Budget Office released a report revealing that the city’s high earners are fleeing the Big Apple. The number of New Yorkers earning more than $750,000 dropped by nearly six percent between the 2019 and 2020 tax years.
According to the IBO, the number of New Yorkers earning more than $1 million dropped by nearly two percent. These wealthy residents are depriving the city of vital tax revenue, which is essential to regaining the health of the community and its ability to provide services.
In addition to leaving the city, wealthy New Yorkers are also decamping to lower tax states. Many of these rich people are heading to the Hamptons, an upscale beach town on Long Island.
In the past year, more than 300,000 people have left the city. This includes a significant number of millionaires. A total of 2,393 millionaires moved from Manhattan to other parts of the state in 2020.
These millionaires took with them a combined income of more than $133.3 billion. According to the IBO, the average income of those who left the city was almost twice as much as that of those who stayed.
Several New York City-based financial firms have moved their headquarters to Palm Beach, Fla., and Elliott Management relocated its headquarters there as well. Others moved to Hawaii and Los Angeles.
The exodus of wealthy New Yorkers is happening despite the fact that the number of high earners has increased by 10% nationally. While the number of wealthy people has increased in other states, this loss of wealth could have an impact on the funding of vital public services.
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