Report Claims Progressive Tax States Attract Millionaires, But Data Shows Otherwise

The labor-aligned Fiscal Policy Institute released a review of federal tax data asserting that states with the most progressive income-tax structures, including New York, are “millionaire-friendly” and can raise rates without driving wealthy residents away. Its authors, Andrew Perry and Cornell professor Cristobal Young, identified five states plus Washington, D.C. as the most progressive, despite omitting several states with higher top brackets in 2023.

Their definition equates one outlet concentration of millionaires with the effect of tax policy, a link critics say is unsupported. Data show Florida, which has no income tax, now has a higher millionaire concentration than California or New Jersey, and New York’s share of the nation’s millionaires has declined over the past decade. Moreover, major financial firms are expanding operations in lower-tax locales like Dallas, and JPMorgan Chase reports more employees in Texas than New York. The report’s conclusions therefore appear contradicted by the evidence, raising questions about upcoming tax-increase pushes by Governor Kathy Hochul and Albany Democrats.