Goldman Sachs CEO warns New York City over high taxes

David Solomon says New York City's future as a global business hub is 'not guaranteed'

New York City's policies like higher taxes mean its status as an international business hub could be threatened, Goldman Sachs' chief executive has warned.

David Solomon

David Solomon, chief executive officer of Goldman Sachs & Co., speaks during the Bloomberg New Economy Forum in Singapore, on Wednesday, Nov. 17, 2021. (Photographer: Bryan van der Beek/Bloomberg via Getty Images / Getty Images)

Goldman Sachs chairman and CEO David Solomon said during an interview at the Financial Times' Global Banking Summit this week that while "New York is not going away," it is "also not guaranteed for any urban center that you have a permanent place in the world," according to the outlet.

Goldman Sachs is headquartered in New York City.

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

Goldman Sachs building

One World Trade Center is reflected on the Goldman Sachs Group Inc. headquarters building in New York. (Photographer: Mark Kauzlarich/Bloomberg via Getty Images / Getty Images)


New York City saw an exodus of residents when it became the epicenter of the coronavirus pandemic in the U.S. last year, and the city was hit with a major budget deficit over the reduction in tax revenue amid extended lockdowns.

The governor at the time, Andrew Cuomo, even said he had been calling wealthy New Yorkers and begging them to return to the Big Apple rather than making their vacation homes their permanent residences.

Cuomo sparred with New York City Mayor Bill de Blasio over the mayor's wishes to hike tax rates further on high-income New Yorkers in 2020, with Cuomo arguing that even more would flee.

NYC Mayor elect Eric Adams

Mayor-elect Eric Adams attends the "West Side Story" New York Premiere at Rose Theater, Jazz at Lincoln Center on November 29, 2021 in New York City. (Photo by Roy Rochlin/Getty Images / Getty Images)


New York City's incoming mayor, Eric Adams, has promised to make the city more business friendly, but as things stand now, the federal government is looking to push tax rates for high-income New Yorkers to new heights.

According to a study from the Tax Foundation, the latest version of House Democrats' Build Back Better Act supporting President Biden's agenda would make the top tax rate for residents of New York state 66.2%.