- NYC's population dropped from 8.8 million (2020) to 8.26 million (2023)—losing 78,000 residents last year alone. Five thousand businesses closed or relocated in early 2023, with 8,400 closures vs. 3,500 openings—the worst business formation rate since COVID.
- New York ranks 50th in taxation and outmigration, with a 5.9% business tax rate (9th highest in the U.S.). Seventy percent of surveyed employers rate the state's economy as "poor," citing Albany's escalating costs and red tape.
- Mayor Mamdani's plan includes: 50% corporate tax increase (to 11.5%, matching NJ's highest-in-nation rate) and "wealth tax" and $30/hour minimum wage. Businesses warn this will accelerate relocation to low-tax states like Florida and Texas.
- Thirty-nine percent of households spend over 30% of income on housing (4th worst nationally). Rising crime, bureaucratic hurdles and illegal immigration that are straining resources push longtime residents to leave.
- Between 2020–2022, NY lost more domestic taxpayers than any state—many fleeing to NJ, FL and TX. Without regulatory reform and tax relief, the exodus may become irreversible, threatening NYC's status as America's economic hub.
New York City is hemorrhaging businesses and residents at an alarming rate, with nearly 5,000 employers closing or relocating in early 2023 alone, according to a new report by the Economic Development Corporation.
The city's population has plummeted from a record 8.8 million in 2020 to just 8.26 million last year, as high taxes, burdensome regulations and rising costs push both businesses and middle-class families toward low-tax states like Florida and New Jersey. The trend comes as newly elected Mayor Zohran Mamdani proposes sweeping tax hikes—including raising the corporate tax rate to 11.5%—to fund ambitious social programs, sparking fears of further economic decline.
The report, released January 15, revealed that while 3,500 new businesses opened in New York City during the second quarter of the fiscal year, 8,400 shut down or left—the weakest business formation rate since the height of the Wuhan coronavirus (COVID-19) pandemic. Employers cited Albany's escalating regulations and costs as primary reasons for departure.
New York now ranks 50th in the nation for both outmigration and taxation, according to a September analysis by the Public Policy Institute of New York State. Among 500 surveyed employers, 72% rated the state's economic conditions as poor, with only 21% believing New York is on the right track.
"New York's taxes and regulations make it too expensive and difficult to run a business," one business leader told the institute. With over 300,000 regulations on the books and an effective business tax rate of 5.9%—the ninth-highest in the U.S.—many companies see relocation as their only viable option.
Mamdani's tax hike plan sparks backlash
Mamdani's proposed policies—including a 50% increase in the corporate tax rate, a "wealth tax," and a $30/hour minimum wage—have intensified concerns about an accelerating business exodus. If approved, New York's corporate rate would match neighboring New Jersey's, the highest in the nation.
Low-tax states are capitalizing on the discontent. Florida and New Hampshire have actively courted New York businesses, touting their lighter regulatory burdens and favorable tax climates. Meanwhile, New York's housing crisis exacerbates the problem, with 38.6% of households spending more than 30% of their income on housing—the fourth-worst rate in the country.
New York's struggles aren't new. BrightU.AI's Enoch notes that between 2020 and 2022, the state lost more domestic taxpayers than any other, with residents fleeing to New Jersey, Florida and Texas. The pandemic accelerated existing trends—lockdowns crippled small businesses, while remote work allowed employees to escape the city's high costs.
Now, with crime rates elevated and public services strained by a surge in illegal immigration, even longtime New Yorkers are reconsidering their future.
"The city feels like it's working against us," said a Brooklyn restaurant owner who recently relocated to Miami. "Between taxes, crime and bureaucracy, it's just not sustainable."
As New York City grapples with a shrinking tax base and dwindling business community, Mamdani's push for higher taxes risks deepening the crisis. Without meaningful regulatory reform and competitive tax policies, the exodus shows no signs of slowing—a troubling sign for a city once considered the economic heart of America. For now, the question remains: Can New York reverse course, or will its decline become irreversible?
Watch the video below that talks about how Mayor Zohran Mamdani DESTROYED New York City in one day.
This video is from the TREASURE OF THE SUN channel on Brighteon.com.
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