As New York City became a ghost town as the city shutdown its restaurants and businesses, wealthy New York City residents left Manhattan and Brooklyn to go to their second homes in the Hamptons, upstate, or Connecticut. Now, Mayor Cuomo is begging them to come home to help save the city from its continued economic downward spiral.
Governor Cuomo said because there is no national plan to tackle the coronavirus, he is slow to reopen the city because he fears a second spike. But as time goes on since the shutdown, the top 1% are choosing to make their second home their first home. Furthermore, crime in New York City has risen dramatically, and in the Upper East Side, it has risen by 286%.
But the longterm effect of the wealthiest in New York City will be devastating. And many of these residents, who have now broken from city life, are realizing the taxes they have to pay may not be worth it. While New York City’s surcharge is already high, there are calls from the city council to raise taxes on the rich in response to the expected $30 billion deficit New York will see in the next two years. Cuomo is fighting this initiative, because he knows if taxes are raised, the 1% will be gone for good. And that is why he is begging the rich to come back to New York City. Cuomo said, “They’re not coming back right now. And you know what else they’re thinking, if I stay there, they pay a lower income tax because they don’t have to pay the New York City surcharge. So, that would be a bad place if we had to go there.”
The economic effects of the coronavirus in Manhattan are shockingly noticeable, as retail stores in the Upper East Side and restaurants close. Cuomo understands what an increase in taxes on the rich will mean for the entire city, and is focused instead on the next coronavirus relief bill, which he hopes will give money to the state and local governments.
As Margaret Thatcher famously said, “the problem with socialism is that you eventually run out of other people’s money.” While the left has continuously attacked the 1%, they are starting to realize how they need them to fund their socialist programs. Without taking their money, there is none to give. An estimated 420,000 Manhattan residents left the city in May, and as fall approaches, many are not expected to come back.