New York has experienced a significant decline in its share of the nation’s millionaires, a trend that researchers say may have cost the state nearly $11 billion in potential tax revenue.
According to a recent analysis highlighted by the New York Post, New York’s share of U.S. millionaire households fell from 12.7% in 2010 to 8.7% in 2022. The report, prepared by the Citizens Budget Commission, suggests that if the state had maintained its earlier proportion of wealthy residents, it could have generated approximately $10.7 billion more in personal income tax revenue.
The findings have intensified debate over the state’s economic policies and long-term competitiveness. Critics argue that high taxes, expensive housing, and a rising cost of living have encouraged affluent individuals and businesses to relocate to lower-tax states such as Florida and Texas. These states have attracted many high-income earners in recent years, benefiting from lower tax burdens and more affordable living costs.
Supporters of New York’s current policies, however, caution against drawing simple conclusions from the data. They note that migration patterns are influenced by numerous factors, including employment opportunities, lifestyle preferences, family considerations, and broader economic conditions. Some experts also question whether tax rates alone are the primary reason wealthy residents choose to move.
The report does not claim that New York directly lost $11 billion in tax collections during a single year. Instead, the figure represents an estimate of the additional revenue the state might have received if it had retained the same share of America’s millionaires that it held more than a decade ago.
As policymakers continue to debate taxation, economic growth, and population trends, the study is likely to remain part of the broader discussion about how states can attract and retain high-income residents while maintaining public services and fiscal stability in an increasingly competitive environment.
