Tuesday, July 23, 2024

Wall St. CEOs Warn NY Tax Increase Could Prevent Workers’ Return to NYC

'This is not about companies threatening to leave the state; this is simply about our people voting with their feet...'

A group of high-powered New York investment and business leaders are raising the alarm about a tax hike that they say could jeopardize New York City’s economy.

In a letter to embattled New York Governor Andrew Cuomo and Democrats in the state legislative bodies, 250 CEOs and business leaders warn that another tax-and-spend bill during the pandemic could pose serious harm to the state’s business prospects long-term.

“Only about 10% of our colleagues are in the office and prospects for the future of a dense urban workplace are uncertain,” the letter reads. “Many members of our workforce have resettled their families in other locations, generally with far lower taxes than New York, and the proposed tax increases will make it harder to get them to return.”

Democrat legislators in New York have proposed the tax increase, which would raise the estate tax, corporate franchise tax and personal income tax on those with an income over $1 million.

CNBC reports that the letter asks New York’s political leaders to hold off on tax increases until residents have had time to recover from COVID-19, which has hit the state hard.

“This is not about companies threatening to leave the state; this is simply about our people voting with their feet,” the letter adds.

One socialist member of New York’s state senate, Jarabi Brisport, shows some of the hostility businesses are facing in the state. He went on Twitter in response to the letter with a threat:

Signers of the letter include JetBlue CEO Robin Hayes, BlackRock Chairman and CEO Larry Fink, JPMorgan Chase CEO Jamie Dimon, Pfizer Chairman and CEO Albert Bourla, and Citigroup CEO Jane Fraser.

“Ultimately, these new taxes may trigger a major loss of economic activity and revenues as companies are pressured to relocate operations to where the talent wants to live and work,” the letter reads. “This is what happened to New York during the 1970s, when we lost half our Fortune 500 companies, and it took thirty years to recover.”

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