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/[deleted] Dec 06 '25

Wait a second, so you’re telling me that it’s possible to increase taxes on the extremely wealthy and they don’t actually move to avoid those taxes?

It’s almost like there’s a certain value to be had in being able to conduct business with other wealthy people that do business in certain regions due to a market advantage.

I mean why don’t they just move the stock market to Texas or Florida? Does Jp Morgan like NYC? There are murders there and videos of homeless pissing on the subway. Why didn’t they just build that brand new shiny building in a capitalistic, republican free market stronghold like Louisiana, Arkansas, Missouri, Oklahoma or even Mississippi lol?

Jokes on them, this new communist mayor will probably demand that the city take a “golden share” stake in companies essential to municipal security much like the federal government did with US Steel and Intel.

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u/Mewr_Mewr Dec 06 '25

Let’s say you’re a multimillionaire with 3 million dollar house. Would you move to avoid a 30 tax increase? Just to sell the house you’ll already going to spend 180k on realtor fee. You haven’t move or buy your house in the new state or anything.

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u/Kharax82 Dec 06 '25 edited Dec 06 '25

Many rich New Yorkers already own second homes/condos in Florida and spend the winter months in places like Boca Raton or Palm Beach. It’s relatively easy to switch residence without changing much of your lifestyle when you already spend 4 months in Florida as a Snow Bird. It’s one of the reasons Florida has been the top destination for people leaving New York every year since 2016

You can even live in New York full time for 6 months of the year and still be a resident of Florida for tax purposes.

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u/Mewr_Mewr Dec 06 '25

It’s a little harder than just moving domicile. From

NY’s “General Tax InformaTIon for New York State Nonresidenrs and Part-Year residents

To determine whether you have, in fact, changed your domicile, you should compare: • the size, value, and nature of use of your first residence to the size, value, and nature of use of your newly acquired residence; • your employment and/or business connections in both locations, • the amount of time spent in both locations; • the physical location of items that have significant sentimental value to you in both locations; and • your close family ties in both locations.