No, Millionaires Aren’t Leaving NYC. Here’s the Real Story.

The rich are fleeing New York, the city is doomed, and the new mayor's tax policies will destroy everything. Does this sound familiar? Well, listen up. New York's millionaires aren't going anywhere. How do I know? Because I'm a multi millionaire who's lived in New York. I'm actually sitting in New York right now. I've paid millions in taxes, but I'm not leaving. And neither are most millionaires like me. Today I'm going to show you the real math behind leaving New York and the things you haven't heard about why so many millionaires stay. Plus, I'll reveal the one question that exposes the game that the wealthy are actually playing. So let's start with the first shock. What it actually costs to pack up and leave New York city. Reality number one, you lose your money making network. In June 2025, democratic socialist Zoran Mandani won New York City's mayoral primary. And immediately the wealthy started making their usual threats. Hey everybody, I'm a rich guy and if you dare increase my marginal taxes even 0.25%, I'm gonna pack up and leave. Are you freaks seriously still believing this bull? They've been using the same technique for the last 75 years and you still buy it every single time. I can't believe you're falling for it. They governors and politicians, they also played their part. They lined up warning Mandani's election will trigger a mass exodus of millionaires. They're all going to Palm Beach. First of all, take a deep look in my eyes. Do I look like the kind of guy who wants to move to Palm Beach? Do you think I'm going to Palm Beach? Not in a million years. But here's what nobody talks about when the wealthy threaten to leave. And it's probably not what you expect. New York is not just any city. It is an international world class hub where deals get done. When the wealthy threaten to move away to some suburban enclave in Florida or Texas, they are gambling away the ecosystem that often was what made them rich in the first place. We're talking about the daily serendipity, the face to face access, the proximity to clients, investors and media networks, the people, the social networks, all of that gone. And here's what's the most shocking part. When millionaires do move, 72.9% of them go to other high tax states like New Jersey or California, not to the lowest tax states. Because you and I intuitively understand that quality of life matters, business climate matters. We're talking about the ultra Wealthy, as one expert put it. Successful people want to be somewhere they can go to the theater and have business opportunities and hire talent. The place itself is part of their success. But it's not just business connections that the wealthy and ultra wealthy lose. Like, let me ask you a question. When we're talking about wealthy and ultra wealthy people, how old do you think these people are? What type of people do you think these are? In our popular culture we tend to see some 24 year old crypto investor who made a ton of money. But typically people who are wealthy are older and they are what researchers called highly networked insiders. Your trusted doctors, your kids, elite schools, your entire social fabric. None of that teleports to Utah if you decide to move there. And during COVID it's true, many affluent New Yorkers did leave. Many did same from California. So leaving New York City is not simply a financial decision, because the wealthy don't simply only make decisions for money's sake. If that were the case, they wouldn't even be living in the United States. But that's not how people actually think. That's just what they want you to think so that you don't raise taxes on them. Not only would leaving mean that you lose the factory that you manage day to day and the connection to all of your senior staff that work there, but it would mean that you would lose access to be able to go to the restaurants that you love, to the things that your children enjoy. There are so many parts, financial and non financial, that the wealthy and ultra wealthy would lose. And that is why it is such an obvious lie. The wealthy and ultra wealthy would already be living in low tax states if that's what they wanted. But if you just think about it intuitively and you back it up with data, what where do the wealthy and ultra wealthy live? They live in high tax states. California, New York, Boston. Sure, some of them live in Texas and some of them live in Wyoming. Of course there are exceptions, but in general they tend to live in New Jersey, New York, Boston, California. Why? Because they want access to the social network, the business connections, the culture, and all the other things that drive so many people to want to live in these states. Now maybe you're thinking, come on Ramit, these rich people are going to leave no matter what. But it's not nearly as simple as just packing a U haul and getting on the road. When the wealthy move, they face huge costs that can wipe out the financial benefit of moving almost immediately. Reality number two, moving is expensive and difficult. Let me Give you an example. Let's say you own a $5 million loft in Tribeca. You are pissed about taxes, so you begin the process of selling and moving. Well, you might stop in your tracks if you knew just how much it's actually going to cost you to leave. Let's take a look at some numbers. Between broker commissions, transfer taxes, capital gains, closing costs alone are over $500,000 gone. Now you need to buy in Miami. South Florida luxury real estate is at record highs because a lot of other people had the same idea. Two penthouses in one new development just sold for $20 million. To buyers fleeing the Northeast. You're paying top dollar, often over asking for anything comparable to what you had in New York. Then there's the actual move. For a wealthy household, relocation expenses can hit six figures. Add it all together, you've burned through close a million bucks just to relocate. Now let's acknowledge that these are one time moving expenses. Well, that is if you choose not to return to New York as so many wealthy people have done. But what's important to understand is that when we talk about raising taxes on the wealthy, we talk about are talking about raising the marginal tax rate, the highest tax rate, a slight amount which won't even bring it back to its peak numbers. Do you understand that we are at historically low taxes for wealthy people? Most people don't even know that. So I understand how it sounds. Fleeing when taxes go up sounds like it can make all the sense in the world. But for the wealthy, the math is not the same as it would be for someone packing up their middle class house and literally driving a U haul to a different state. A million dollars in expenses to sell a house, to move, to purchase a new place or more. That's a lot of money for a move just to combat a marginal increase on taxes. Oh, and that's just the beginning. The cost is actually greater than the wealthy expect because they end up losing more than just money and relationships. Reality number three, tax havens have a lot of hidden costs. After Mamdani's primary win, Realtors in Florida reported a surge of inquiries from New York City luxury buyers. And I started getting about 10 million right wing messages on Twitter telling me, I told you all the rich people are leaving because this is communism. You know, everyone had the same brilliant idea. Zero state income tax, warm weather, bigger houses. In fact, let's get a mansion. It's a tax free millionaire's paradise. But what's the weather like in Florida? Before you settle into your new mansion, remember you are Signing up for living there. We're talking about hurricane season. Florida home insurance premiums have skyrocketed to around $11,000 a year. That's the highest in the nation. Several insurance have pulled out of the market entirely, meaning you might not even be able to get coverage. And it gets worse for those who adjusted their life to New York City's culture and amenities. In my system, those are your money dials. The things you love spending on that make your rich life worth living. Now let's imagine you have $150 million of net worth and you've gotten used to living in New York. You enjoy your penthouse, eating at masa every 10 days and all of a sudden you go, I am outraged that I might have to pay a slight increase, a single digit increase in my marginal tax rate. I am out of here. Now, aside from the obvious expenses that you will incur moving to a different state, just imagine the day to day. I'm not trying to be flippant with this, but I'm really pointing out that if you love a certain type of sushi that gets flown in fresh every single morning and you are worth $150 million, that is something that you have become accustomed and now you have to compromise because you chose to leave to avoid a marginal tax increase. What in the hell is wrong with you? Something has gone very wrong in this country. When I get literally 50 plus messages a day from people saying taxation is theft. The very same people driving on roads that taxation paid for. But to imagine that you could be worth hundreds of millions of dollars and your number one priority for where you live is is how low your tax bill can be. I can't think of an example of a bigger loser in this country. For wealthy New Yorkers, the money dials are usually turned up on convenience and world class culture and access to incredible experiences. Now moving to Florida probably means turning those dials way down. And no amount of tax savings makes up losing what you actually value. Especially when you're incredibly wealthy. And what happens when you meet your friendly Florida neighbors? You can expect a little bit of hostility from those signs with slogans like Don't New York my Florida. Now if that's the case, again reminding you these are ultra wealthy people, are they going to be happy about living in a place where their own freedom is restricted, where they can't get the food they want or access to the experiences they want? As we say in economics, there's no free lunch. But I will say taxes are still a real factor, especially if you are a business owner, and if you don't plan for them proactively, you're going to end up reacting, often reacting in an over the top way. That's the same mistake that a lot of people make when they talk about fleeing New York. Why is it that nobody flees Wisconsin? They move away from Wisconsin, but they flee New York and California. Have you ever noticed that? Hmm. I wonder what's behind that. Listen, if you're a business owner and you want to save on taxes, this next part will actually help you. Most business owners treat taxes like a fire drill. April hits. Suddenly they're scrambling for receipts and calling their accountant, hoping they didn't miss anything. That's not how successful business owners operate. It's definitely not how I run my business. I believe in being proactive, planning ahead so things are calm, not chaotic. And that's why I like Gelt. They're a modern CPA firm that works with business owners year round, not just during tax season, so you can legally minimize your tax bill and keep more of what you earn. One of my colleagues uses gilt and saves far more than he spends on tax prep. Here's what makes them different. A proactive tax plan tied to your goals. Cash flow and P and L guidance on credits, deductions and entity setups to optimize your structure. And a clean, modern platform that keeps everything organized and on track. Having the right team in place to show you the small strategic moves around compensation, retirement and major purchases can save you thousands at tax time. So if you run a small business, now is the time to take action. Visit joingelt.com ramit to schedule your consultation today. You can scan the QR code on screen or click the link in the description below. Reality number four the audit process is designed to make you stay so far we've covered the emotional, financial and lifestyle reasons that wealthy New Yorkers hesitate to leave. But the New York Times uncovered a fourth factor, and it's the one almost nobody knows about. The moment that a wealthy New Yorker claims they've moved, they trigger one of the most aggressive, arguably invasive audit processes in the country. I'm not exaggerating. These New York auditors don't just ask where you live now. They're asking questions like where did you spend your holidays? Where did you stay after returning from your overseas trip? Where are your dog's ashes? Where is your burial plot? This is a very, very strict audit of wealthy and ultra wealthy people. The Times also reports that if you make more than $1 million, an audit is extremely likely if you make more than 10 million, tax lawyers say the odds are 100% and the documentation they ask for is wild. We're talking about cell phone location records, easy pass logs, credit card receipts, travel calendars, kids, school records, even the microchip address registered to your pet. This is the part most people misunderstand. As the New York Times noted, New York doesn't just care if you spend more than 183 days in another state. They also care about your home. The Times described something called the near and dear test. If you had 15 minutes to grab your most prized possession before your house burned down, where are those items located right now? One man actually won his residency case because he moved to Texas with his dog. The judge actually cited his dog as proof of his true home. And here's another trap. If you keep a permanent place of abode in New York, even a pied a terre or a small apartment, and you spend more than half the year there, you still owe New York taxes. And that brings us to the real question. If it's this hard to leave, does anyone actually leave? Let's look at the data. Reality number five, almost no one actually leaves. Well, let's take a look at the results of a definitive study of every US millionaire's tax records. Over 13 years, only 0.3% of millionaires moved to a lower tax state in a year. In other words, a grand total of three out of a thousand millionaires went from a high tax state to a lower tax state. This is a trickle, not an exodus. There is, quote, no statistically significant evidence of tax migration. In fact, millionaires actually move less than the general population. Do you know why that might be? Because most people, when they move, they move for jobs, they move for cost of living. They move because they need money. But millionaires, multimillionaires and billionaires, they don't move for those reasons. In fact, they tend to be older, they tend to be more socially connected, more entrenched to their locale. They're not going to move to save an extra $50,000 or even $5 million. They like where they live. That's why they live there. Now let's look at New York specifically. There was a tax hike in 2021. Everybody was panicking about it. Well, what's the result? New York added around 15,000 high income households while only 2,400 left. And if you watch the news, all they will focus on is thousands of millionaires fleeing New York. Of course, that same news won't mention that while 2,400 left. New York added 15,000 high income households. And that was completely consistent with the trends before the tax change. Can I just be really blunt with you for watching this video? What the hell is wrong with you? How can you keep falling for this shtick over and over again? Do you not understand the game being played? Let me lay it out for you. Wealthy people are the ones who created the laws that give them advantages with taxes. They pay preferential rates. As Warren Buffett, he pays a lower tax rate than his secretary. And then when any politician comes on the scene and threatens to raise taxes, not raise them to some astronomical level, raise them a marginal single digit amount that will simply take them back to what it used to be a few years ago. All the millionaires line up in line and go, if you raise our taxes, we will leave. Do you know how many people message me on social media saying we can't raise the taxes on job creators? Have you ever got a job from a poor person? I'm like, I don't need tax benefits to hire someone. There's Only one reason CEOs hire people and that is because they have more demand in their business that they can serve. So please stop it with these trite phrases of you never got a job from a poor person. That is like a fourth grader's understanding of taxes. We are talking about wealthy and ultra wealthy people and how they rarely leave when taxes increase. This is what I call an invisible script, A belief that shapes our culture and our actions without us even noticing it is if we tax the wealthy, they will leave. But this story about millionaires running to these tax light havens is just what economists call performative economics. The wealthy use threats as leverage, but when it comes down to it, they're mostly happy where they are. If they weren't, they wouldn't be there. So why do wealthy people keep making these empty threats? Because you believe it. The answer reveals something important about how the rich actually think about money and taxes. Reality number six, rich people don't just make emotional money decisions. You know, a lot of people think millionaires are storming off to Florida when they're mad about a tax increase. You're raising my taxes? Fine, I'm out of here. But here's what the rich actually do when their taxes go up. First of all, they don't call their accountant. Their accountant calls them. Their accountant will often find ways to adjust their financial planning to account for it. But more importantly, this is something you really need to understand. A wealthy person does not even notice if they're paying an extra $50,000 in taxes. In many cases, $250,000 have no effect on them. As you move up the wealth chain, you would be shocked that people paying an extra four or five million dollars per year, they don't notice it. So this is what I call asking $30,000 questions instead of $3 questions. The wealthy aren't asking, should I move to Florida and save a little on taxes? That's a $3 question. That's not really the way they think about it. Instead, they're asking, how do I restructure my income? What trust strategies make sense? How do I optimize my financial picture? And these are all ongoing conversations with their entire financial team. These aren't just $30,000 questions. They're like $300 million questions for the ultra wealthy. So it is important to understand that the ultra wealthy have teams that will adapt. But it's also important for you to understand that when taxes go up, wealthy people will pay more. Wealthy people do not have some magical abracadabra wand that allows them to get out of paying more in taxes. That is why they fight so furiously against taxes going up. Sure, they can minimize them and amortize them and spread those taxes out. Okay, in some cases, maybe avoid paying a couple of them. But in general, rich people fight against taxes going up so much because they will have to pay them. And that is why when people say to me, ramit, why don't you just write a volunteer check to the government if you love taxes so much? I always reply by saying, no amount of volunteering from rich people will ever equal a well enforced tax. If taxes go up, the wealthy are not going to sell their penthouse overnight, especially if the top city tax rate goes up 2%. The ultra wealthy do have tools to manage a tax hike without uprooting their entire lives. They have trust. They delay recognizing income. They find creative solutions. But if you're not one of them, and if you have not had access to these financial teams, this emotional millionaire story sounds so plausible. I'm so angry and I'm going to take my piggy bank and go down to Florida. When the ultra wealthy say, I'll leave if you tax me, it is a strategy, not reality. It's the equivalent of a toddler saying, if you don't give me that candy, I'm going to cry in the middle of this store. You wouldn't believe that. And yet you believe the ultra wealthy. So let's look at the data again. Are we losing or gaining millionaires in New York. Before we get to that, let's talk about you for a second. All video long, you've seen how the wealthy actually make decisions. They don't panic, they don't follow the headlines, and they definitely don't blow up their lives because of one financial change. They run the numbers. They follow a system. They make calm, rational choices that protect their future. Most people do not do that. Most people make money decisions the same way that people pretend to. They're reactive, they're emotional, they don't have much strategy behind it. That's the real problem. And, and that's exactly where my Money Coaching program comes in. Inside the program, I teach the same decision making frameworks that the wealthy actually use. And you don't need millions of dollars or a Wall Street Rolodex. You will learn how to evaluate the big financial decisions in your life with structure. With systems. You're going to learn how to stop reacting to headlines and to random people whispering in your ear and start making choices that align with your rich life. And you're going to create a complete financial system that you can use for the rest of your Life in just 48 hours. If you've ever looked at questions like should I move? Should I buy this house? Should I change jobs? Will I have enough when we retire? And it feels overwhelming. Money coaching will give you clarity, confidence, and a plan. You don't need to be a millionaire to think like one, but you do need to learn the right systems. So if you're ready to start making smart decisions about money, scan the QR code or click the link below to join Money Coaching today. And next, let's dig into the truth of whether we are losing or gaining millionaires in New York. Reality number seven, New York City keeps attracting millionaires. New York has more millionaires than anywhere on earth. It's still the world's top millionaire city. And it has 123 billionaires, also a record. Why is that? The truth is networking, deal, flow, culture. These are all essential to the lifestyle they want. A New York City address means something. Executives here have access to media and investors and cultural energy that you can't get in other cities. And remember, New York and California remain economic powerhouses despite high taxes. These states just keep attracting wealth and producing new millionaires. Meanwhile, there is no surge in the wealthy moving to Wyoming in droves despite the low taxes. So we need to uncover who benefits from this story continuing to spread so that we understand the game actually being played. Before we dive into that, I have a request. If this video Is opening your eyes to how the wealthy actually operate. Not the myths, but the real math. Hit, subscribe. Turn on notifications so you never miss when I expose another financial myth, and that is keeping you from building real wealth. Trust me, once you start seeing money the way that the wealthy actually do, you can't unsee it. Reality number eight, they need you to believe the lie. The whole concept of an exodus of the rich, It's a lie. And it's perpetuated by the people who benefit from lower taxes. I teach people to spend extravagantly on what they love and cut costs mercilessly on what they don't. And the wealthy threatening to leave New York? They love living here. They just want you to think they will. So every time someone proposes raising taxes on the wealthy, they roll out the same old playbook. In fact, let me roll out the steps of this playbook. Step one, find a few business leaders willing to make dramatic statements about leaving. Step two, get friendly media outlets to amplify those quotes into headlines about a quote mass exodus. Step three, make sure your political buddies warn about the economic collapse if we don't back down. Think about the timing. Do you not find it curious these threats always emerge right when tax policy is being debated. Never during quiet political periods. Always when there's maximum political impact. Guys, the rich are not moving, but they need you to believe that they might. It's like constantly having a threat hanging over your head. So the minute anyone even says the word tax, you go tat drop that guillotine on your head. That's kind of the way it works. Because if you believe the lie, you'll pressure your representatives to keep those wealthy people job creators, taxes low. They're playing a game. And they're just rolling out the same old playbook that they've been rolling out for decades now. You know how to see through it. And if you want to see through another massive myth that keeps people from building real wealth, the lie that buying a house is always a smart investment, then watch this video. Next, I'm going to break down exactly why I'm a multimillionaire who chooses to rent instead of owning a house.