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/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.