Part 4/8:
The approach of financial collapse could trigger severe economic repercussions. To cope with mounting debts, local authorities might resort to increased taxation. Already, taxes on everything from sports tickets to tolls and parking are rising, and these hikes are expected to intensify. Because New York City levies its own income tax—apart from state and federal taxes—there’s potential for even higher levies on residents and businesses.
This scenario would likely catalyze a mass exodus of the wealthy and corporations, who contribute significantly to the city’s tax revenues. Estimates suggest that up to 500,000 affluent individuals and businesses could leave within four years, further deepening the financial crisis.