When exploring new revenue streams, government administrations want to ensure they get their fair share of businesses’ profits in their jurisdiction. This isn’t to prevent certain types of businesses from operating in the state, but rather that they pay their way 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 a revenue income that exceeds $1tn. Manhattan, in particular, is the world’s primary hub for financial companies, banking and communications. Whereas these companies have provided a huge tax base for over a century, other new revenue streams are emerging in the New York landscape. The state wants its piece of whatever flourishing industry happens to be turning over a profit.
Creative industries such as:
- Digital media – including online news outlets, bloggers and social media influencers who work in advertising, would all fall into this category.
- Advertising – New York has consistently 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 large revenue stream 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 quite some time. However, as new names and brands emerge, New York is providing a central point for these creators to flourish. With this comes new tax revenues.
Of course, as these industries find their feet and provide increasingly larger tax revenues for New York, they’re still trailing far behind the behemoths of banking and finance. That’s not to say that the IRS shouldn’t explore these industries, but staying ahead of the curve has made New York successful.
Gambling is another popular activity both in New York and the United States. However, as far as this mammoth East Coast state is concerned, they’re receiving a healthy revenue stream from what gambling offers. Over $1bn in bets was lodged during the first month of operations in the first quarter of this year. This record-breaking business will generate more than $70m in tax revenue for New York State over the tax year. A growing portion of this is contributed by online casino games, which are included as part of the revenue stream.
Manhattan not only provides a home for these innovative industries but also identifies where they’re making revenues 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 on its own were that of a country, astonishingly, it would be the 12th largest economy in the world. The level of GDP is staggering, and although the more traditional companies are based on Wall Street and provide a large chunk of this tax revenue, other companies also contribute.
The banking sector has some of its biggest hitters stationed in Manhattan:
- JP Morgan Chase – which is one of the biggest banks in the world and the biggest bank in America.
- Goldman Sachs – this investment bank is one of the world leaders in this area of finance. They have spearheaded several companies going public over the last decade. This is 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, typically frowned upon by many of the traditional people in finance. However, many Gen Z’s show a lot of interest in digital currency, and in New York, Goldman Sachs has helped Bumble, Twitter and Robinhood go public. Despite not being based in New York, Goldman Sachs oversaw these public offerings and has turned over considerable revenue while doing so, helping New York state to benefit immensely.
- Morgan Stanley – Another massive US bank with 75,000 employees globally and trillions of dollars in assets.
In conclusion, it’s extremely difficult to begin registering the range of companies that operate in New York. It is called the city that never sleeps, and there are reasons for that. The companies that have more traditional values and that have operated in the state for over a century will always be able to provide a solid base for revenues. However, exploring the new revenue streams will ensure that New York stays ahead of the game and can continue to innovate and be a world leader.