Mayor-elect Mamdani's plan to tax high incomes and corporations aims to fund child care and transit, despite fears of wealth flight, which studies show is rare.

New York City Mayor-elect Zohran Mamdani’s proposal to raise taxes on incomes over $1 million and increase the corporate tax rate has raised concerns among some wealthy residents and officials about potential departures, but experts say evidence shows such tax-driven migration is minimal. Studies from multiple institutions find no significant movement of high earners in response to tax increases, with most staying due to professional networks, cultural amenities, and family ties. Mamdani aims to generate about $9 billion to fund universal child care and free public transit, arguing affordability challenges affect businesses and workers more than tax policy. The measures require approval from Governor Hochul and the state legislature.