Higher taxes threaten NYC status as global business hub: Goldman Sachs

RIYADH: David Solomon, CEO of Goldman Sachs, has warned New York City leaders that higher taxes will make the city less attractive to businesses and their employees.

“New York is not going away” but cautioned that “it’s also not guaranteed for any urban center that you have a permanent place in the world,” the Financial Times quoted him, as saying.

Talking to the newspaper on the sidelines of the Global Banking Summit, Solomon said Covid-19 has moved the city’s residents toward lower-tax states, as New Yorkers pay some of the highest tax rates in the US.

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The top personal income tax rate for state residents would rise further to 66.2 per cent under the latest version of President Joe Biden’s Build Back Better legislation.

“New York has to be aware that there are good choices, and it’s got to make sure it keeps itself super-attractive,” Solomon said. “At the end of the day, incentives matter, taxes matter, cost of living matters,” he added.