{"id":184375,"date":"2026-04-03T11:35:12","date_gmt":"2026-04-03T11:35:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/184375\/"},"modified":"2026-04-03T11:35:12","modified_gmt":"2026-04-03T11:35:12","slug":"its-not-just-florida-and-texas-that-threaten-nycs-sputtering-tax-base-heres-the-next-big-worry","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/184375\/","title":{"rendered":"It\u2019s not just Florida and Texas that threaten NYC\u2019s sputtering tax base \u2014 here’s the next big worry"},"content":{"rendered":"

Mayor Zohran Mamdani\u2019s plan to tax his way out of the Big Apple\u2019s self-imposed fiscal crisis is facing a fresh and little-discussed threat, according to well-placed financiers \u2013 and it\u2019s coming from artificial intelligence.<\/p>\n

As I reported earlier this week, investors lately have begun to shun city debt<\/a> \u2013 either selling it in the secondary market or balking at buying its newly issued bonds \u2013 over concerns that Mamdani\u2019s numbers aren\u2019t adding up.<\/p>\n

The worry is that his $127 billion budget still faces a $5.4 billion deficit and that his solutions \u2013 like raising taxes on anyone who works \u2013 will make the situation even worse by forcing more people to leave New York City, already one of the highest taxed locales in the country.<\/p>\n

\"CollageMayor Zohran Mamdani\u2019s plan to tax his way out of the Big Apple\u2019s self-imposed fiscal crisis is facing a threat from artificial intelligence Jack Forbes \/ NY Post Design<\/p>\n

Even if Mamdani does manage to balance his upcoming fiscal 2027 budget, some prospective investors in the city\u2019s current and future debt note that he\u2019s got at least three more years of budget to balance, and there will likely be less of a population to tax.<\/p>\n

While a stampede of high earners to lower-tax venues down south like Florida continues to be a major concern, there\u2019s another, less-talked-about issue that\u2019s worrying investors in the city\u2019s municipal bonds: the threat of AI job elimination.\u00a0\u00a0<\/p>\n

\t\t\tMore From\t\t\t\t\t\t\tCharles Gasparino<\/p>\n

Richard Farley is a veteran corporate finance lawyer for Herbert Smith Freehills Kramer, and author of a terrific book published last year on the New York City\u2019s financial crisis of the 1970s: \u201cDrop Dead: How a Coterie of Corrupt Politicians, Bankers, Lawyers, Spinmeisters, and Mobsters Bankrupted New York, Got Bailed Out, Blamed the President, and Went Back to Business as Usual (And It Might Be Happening Again).\u201d<\/p>\n

Farley says AI job losses in software development, financial services and legal services will only accelerate, and those industries \u201caccount for a huge percentage of the high-paying jobs in NYC\u2019s tax base.\u201d<\/p>\n

\"CollageWall Street is still a massive presence in New York, even as firms like JPMorgan and Goldman Sachs start moving employees to places like Texas and Utah. It covers as many as 1 out of every 10 jobs.\u00a0 REUTERS<\/p>\n

\u201cThe AI-based layoffs and hiring freezes are already happening albeit quietly and they will decimate the NYC tax base. It\u2019s not just a flight of earners to Florida and Texas,\u201d Farley adds.<\/p>\n

Wall Street is still a massive presence in New York, even as firms like JPMorgan and Goldman Sachs start moving employees to places like Texas and Utah<\/a>. It covers as many as 1 out of every 10 jobs.\u00a0<\/p>\n

It has also been automating for years, and AI could accelerate that process because it can easily eliminate various back office functions. Why do you need an analyst to write a research report on a stock when AI can deliver it in a fraction of the time and cost?<\/p>\n

\t\t\t\t\t\t\tCharlie Gasparino has his finger on the pulse of where business, politics and finance meet\t\t\t\t\t\t<\/p>\n

\n\t\t\t\t\t\t\tSign up to receive On The Money by Charlie Gasparino in your inbox every Thursday.\t\t\t\t\t\t<\/p>\n

\t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n

New York is also home to some of the nation\u2019s largest law firms \u2013 tens of thousands of jobs, and it\u2019s more than just high-end litigators and deal specialists. The reason law is so susceptible to AI is because lower-level associates \u2014 who can make pretty good coin \u2013 have until recently spent countless hours on research and writing that can now be done by AI.<\/p>\n

When you think of tech you usually think of Silicon Valley, but NYC has experienced significant tech sector growth in so-called Silicon Alley in recent years. A couple of hundred thousand well-paid software developers now reside in the city, and they are maybe the ripest jobs to be eliminated by AI.<\/p>\n

None of this seems to hold much weight with our mayor, of course, who is looking to turn the city into a worker paradise. The problem is, there may not be enough workers to pay the bills.<\/p>\n","protected":false},"excerpt":{"rendered":"Mayor Zohran Mamdani\u2019s plan to tax his way out of the Big Apple\u2019s self-imposed fiscal crisis is facing…\n","protected":false},"author":2,"featured_media":184376,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[66,288,14927,57,9,24,55,54,56,11323,2780,1601,82],"class_list":{"0":"post-184375","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york-city","8":"tag-artificial-intelligence","9":"tag-business","10":"tag-city-budget","11":"tag-metro","12":"tag-new-york","13":"tag-new-york-city","14":"tag-new-york-city-headlines","15":"tag-new-york-city-news","16":"tag-ny","17":"tag-on-the-money","18":"tag-taxes","19":"tag-tech","20":"tag-zohran-mamdani"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/184375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=184375"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/184375\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/184376"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=184375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=184375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=184375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}