BlackRock CEO Larry Fink has warned that a fresh tax increase on the wealthy in New York may encourage people to relocate, according to Bloomberg. Some of New York’s most affluent residents already fled to other parts of the state following the pandemic, as well as Florida or Texas, which do not levy income taxes.
Several money-management firms, including Elliott Management Corp. and Citadel are also relocating their headquarters or opening offices elsewhere.
New York’s move is the latest attempt to target the wealthy to fund budget shortfalls or future spending.
The combined top rate for the highest earners in New York, who also pay a city income tax, would range from 13.5% to 14.8%, the highest in the country.
BlackRock, which reported that assets under management surpassed $9 trillion in the first quarter, is moving its headquarters to a new skyscraper in Hudson Yards.
BlackRock reported a net income of $1.2 billion, or $7.77 a share, more than the $7.71 estimate.BlackRock stock is currently gaining. BLK: NYSE is up 2.11%
