When exploring new sources of revenue, governments want to ensure that they get their fair share of profits from companies in their jurisdiction. This is not to prevent certain types of businesses from operating in the state, but rather that they pay their share in taxes so that the state can redistribute the money for essential services. This will provide funds to support education, sports and infrastructure, among others.
New York has a gigantic revenue stream. The greater metropolitan area has an income that exceeds $1,000,000. Manhattan, in particular, is the world’s main hub for financial companies, banks and communications. While these businesses have provided a huge tax base for more than a century, other new sources of revenue are emerging on the New York landscape. The state wants its share of any successful industry to generate profits.
Creative industries such as:
- Digital media – including online media, bloggers and social media influencers who work in advertising, would all fall into this category.
- Advertising – New York has always been a base for this industry, dating back to the 1920s. However, as the world around us becomes more digital, advertising has followed suit and now provides an increasingly important source of revenue for New York.
- Fashion and design – The city is a hub for some of the biggest names in fashion. Again, this has been the case for some time. However, as new names and brands emerge, New York provides a focal point for these creatives to flourish. This comes with new tax revenue.
Of course, as these industries find their feet and provide increasingly large tax revenues to New York, they are still far behind the behemoths of banking and finance. That’s not to say the IRS shouldn’t explore these industries, but staying one step ahead has made New York successful.
Gambling is another popular activity in New York and the United States. However, when it comes to this gigantic East Coast state, they receive a healthy source of income from what gambling offers. Over $1 billion in bets were placed in the first month of operation in the first quarter of this year. This record activity will generate more than $70 million in tax revenue for New York State this fiscal year. A growing share of it comes from online casino gameswhich are included in the revenue stream.
Manhattan not only provides a home for these innovative industries, but also identifies where they generate revenue and how they can collect their fair share and allow that money to flow back into services that improve the lives of New Yorkers.
If New York’s economy was the economy of a country, surprisingly, it would be the 12th largest economy in the world. The level of GDP is staggering, and while the most traditional companies are based on Wall Street and provide much of this tax revenue, other companies also contribute.
The banking industry has some of its biggest hitters stationed in Manhattan:
- JP Morgan Chase – which is one of the largest banks in the world and the largest bank in America.
- Goldman Sachs – this investment bank is one of the world leaders in this area of finance. They have run several companies that have gone public over the past decade. That’s important, because these companies are some of the newest and most creative in America today. Robinhood, for example, recently rolled out a new cryptocurrency wallet. This is a new form of investment, generally frowned upon by many traditional players in finance. However, many Gen Zs are showing a lot of interest in digital currency, and in New York, Goldman Sachs has helped Bumble, Twitter, and Robinhood go public. Although not based in New York, Goldman Sachs supervised these public offerings and generated considerable revenue in doing so, helping New York State benefit immensely.
- Morgan Stanley – Another large American bank with 75,000 employees worldwide and billions of dollars in assets.
In conclusion, it is extremely difficult to begin registering the range of businesses that operate in New York. It’s called the city that never sleeps, and there are reasons for that. Businesses that have more traditional values and have operated in the state for over a century will still be able to provide a solid base of revenue. However, exploring new revenue streams will ensure that New York stays ahead of the game and can continue to innovate and be a global leader.