New York City Comptroller Brad Lander has announced the withdrawal of his proposal to increase the city's income tax on the top 1% of earners. Initially suggested in May 2023, the proposal aimed to generate funds for pre-kindergarten and affordable housing programs. However, with funding for these initiatives now secured, Lander stated that no additional revenue is needed [e3ad97a8]. This decision comes as high-ranking state Democrats, including Governor Kathy Hochul and Comptroller Thomas DiNapoli, have expressed concerns that high taxes are driving residents out of New York [e3ad97a8]. The last income tax increase occurred in 2021 for earners over $1 million, which is set to expire in December 2027 [e3ad97a8]. Lander's original proposal could have raised approximately $900 million by increasing the tax rate to 4.46% for married filers earning between $750,000 and $5 million, and up to 5.5% for those making over $25 million. Currently, the top rate of 3.876% applies to married filers at $90,000 [e3ad97a8]. Despite the concerns regarding tax rates, Lander pointed out that high earners continue to move to NYC, citing new office plans from firms such as Bridgewater Associates and Citadel as evidence of the city's ongoing appeal [e3ad97a8].