Wealthy New Yorkers Advocate for Higher Taxes

A group of wealthy New Yorkers, including lawyer Craig Kaplan, is actively lobbying Governor Kathy Hochul to increase taxes on high-income individuals and corporations in New York. This initiative, supported by organizations like Patriotic Millionaires and New York City Mayor Zohran Mamdani, aims to fund social programs such as universal child care. The proposal seeks to raise the city income tax rate for households earning over $1 million annually from 3.88% to 5.88%, potentially increasing taxes by $20,000 for a family earning $1 million.

Public opinion in New York shows support for the measure, with approximately 63% of New York City residents and 54% of state residents favoring higher taxes on those earning at least $1 million per year, according to a Siena University poll. Despite this, Governor Hochul, who reported earning nearly $1.5 million with her husband in 2024, has consistently opposed income tax increases. Opposition also comes from business groups like the Partnership for New York City, which warns that higher taxes could reduce the city's competitiveness and lead to an outflow of top earners, potentially creating fiscal pressure given that millionaires contribute about 37% of the city's personal income taxes.

This local movement aligns with broader national and international discussions, as other states like California and Washington consider similar wealth taxes, and a global group of 400 millionaires recently advocated for higher taxes at the World Economic Forum. The debate highlights a tension between funding social programs through increased taxation on the wealthy and concerns about economic competitiveness and potential capital flight.