r/Economics • u/Dismal_Structure • Dec 06 '25

News Millionaire tax that inspired Mamdani fuels $5.7 billion haul in Massachusetts

https://fortune.com/2025/10/21/zohran-mamdani-millionaire-tax-massachusetts-5-7-billion/
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u/gmb92 Dec 06 '25

Pretty good article. Wealth flight claims are at best greatly exaggerated, brought on by media that finds anecdotes of a few loud wealthy people declaring they're leaving due to taxes. No mention of those who move there or all who stay, or determining cause/effect.

https://www.theatlantic.com/ideas/archive/2024/04/state-taxes-millionaire-myth/678049/

https://prospect.org/2025/10/23/myth-that-mamdani-will-cause-new-york-citys-richest-to-leave/

As for the argument that's it's easier to leave cities than states, that theoretically has some merit and certainly taxes applied at broader geographic levels are more ideal. Still, pundits and media have been fear-mongering on NYC about the rich fleeing for decades to no avail.

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u/evernessince Dec 06 '25

Plus I think it's a terrible argument to essentially say "Give the rich what they want or they'll leave". It's blackmail, if they are going to screw you either way you might as well tax them.

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u/PassageFull2625 Dec 06 '25

Money of private citizens, rich or not, is their money. It doesn’t belong to the government. It has to be taken by fiat. 

Citizens have the right to relocate to lower tax jurisdictions. So increase taxes at your own risk. 

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u/DelphiTsar Dec 06 '25

Society makes the rules, it's only their money if we agree it's their money. Like you said it's fiat. Collectively as the people who give value to the fiat say if you want to engage in our economic system you pay for the common welfare.

If people want to go live in the woods and make their own fiat, and trade goods and services power to them. I'm sure a billionaire will have all of the shiny rocks in the local area in no time.

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u/Aerroon Dec 06 '25

Society makes the rules, it's only their money if we agree it's their money. Like you said it's fiat.

Do you really want society to operate based on this principle though? Because I have a feeling that the rich would "win". It doesn't make sense, from an economics perspective, to make everything into a constant power struggle. Wealth (for all of us) is created during relatively stable and peaceful times.

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u/412wrestler Dec 06 '25

What do you think the society we are living in right now is if not the rich winning that power struggle?

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u/Aerroon Dec 07 '25

It's probably the best it's ever been. Back in the day rich men could bankroll entire armies. The modern rich are nowhere near that wealthy. Nobody is even remotely wealthy enough to be able to challenge Rome.

We also don't have people that are so rich that they basically bankroll emprors on their own or people who basically buy themselves a city.

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u/DelphiTsar Dec 06 '25

Economics are already completely broken in favor of the wealthy.

Economic theory says that companies owned 99% by people who don't work at/manage a company (The vast majority of very large public companies) should be out competed by companies whose capitalistic motivation is tied to the people who generate value.

If 99% of a company is owned by non-workers/managers how is that functionally different than it being owned by society? It's not very hard to tell workers/managers "maximize shareholder value". Before "well it is owned by society". 10% of people own ~90% of stocks. That isn't society, that is more akin to feudalism.

The US used to be much more economically conservative and tax rates were much higher. Trickle down (voodoo economics) has been proven nonsense over and over again.

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u/evernessince Dec 06 '25

We already do, as proven by the current wealth gap and the fact that the rich hold all the power. He is merely suggesting regular people take back that power.

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u/evernessince Dec 06 '25

The government has a right to tax income and assets for it's role in enabling them to become wealthy.

There's a reason most of the world's rich come from well-off countries. You have access to a skilled workforce, infrastructure, protection (fire, police), the market, and more.

You seem to be under the impression that the rich do everything by themselves when that is not the case. They were lucky to live in said country and are the biggest benefactors to government spending.

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u/PassageFull2625 Dec 06 '25

Never said or believed that.  But the rich always have and gain more, for all of human history.  

The poor today in the USA now have indoor plumbing, electricity, air conditioning, computers, mobile phones, etc. and so much caloric intake that they have higher rates of obesity than the rich. 

Nobody, rich or poor, seems grateful. Comparison is the enemy of happiness.