Part 4/10:
Smith points out that approximately 48% of the city's tax revenue is generated by less than 1% of the population—its billionaires. He warns that raising taxes on this group could lead to wealth flight, where wealthy individuals and corporations relocate to states with more favorable tax climates such as Florida or Texas. This drain could lead to a decline in tax revenues, increased rent due to fewer property owners, and a subsequent economic downturn.
Moreover, the debate touches on efforts to freeze rent and provide free services, like groceries and transportation, which raising taxes could hinder. Smith questions whether these initiatives are feasible, emphasizing that the source of revenue is critical for their implementation and sustainability.