The Institute on Taxation and Economic Policy released a report this month that the state of New York is home to the highest concentration of wealth, and has the largest gap between rich and poor in the United States. The Progressive Fiscal Policy Institute has highlighted the report, which may have broader implications ahead of the next state budget season. In light of the potential economic downturn, Kathy Hochul considers whether to raise taxes on wealthier New Yorkers even further.
Report Breakdown
To help pay for schools and health care, progressive budget analysts have long advocated tapping New York’s largest cash source, the wealthy. However, conservative budget hawks have warned that such a move would result in more wealthy residents leaving the city. In addition to the personal income tax, the state relies on a relatively small number of very rich people to fund much of its budget.
This month’s report found that wealth is indeed concentrated among a few. New Yorkers worth more than $30 million, or 0.4% of the state’s population, own a combined wealth of $6.7 trillion. These New Yorkers also hold about a fifth of the total wealth held by all of the richest Americans. The report shows that just under half of the wealth isn’t being touched by capital gains.
In an updated report on the finances of the state, it was also shown that New York’s tax revenue has not slowed down as it was originally anticipated amid the fragile economy and high inflation.
Wrap Up
The state may be trying to close the gap between the rich and the poor in the near future, amid this new report. It remains to be seen how lawmakers and the Governor are going to navigate this topic, however. We will be keeping an eye on the situation.