Soaring profits on Wall Street have led to record bonuses, stuffing public coffers with additional tax revenue as New York state and city develop their latest budgets.
But state Comptroller Tom DiNapoli said the $49.2 billion cash-bonus pool his office tallied shouldn’t be a license to expand government spending, and could just be a one-off.
“As budgets are being finalized both at the city and state level, caution would be appropriate,” the Democratic comptroller said. “There are so many geopolitical trends that are happening that are way beyond our control. As always, we talk about the need for the state and obviously for the city to build up their reserves and keep those reserves for what is truly a rainy day.”
The report by DiNapoli’s office put clear numbers on what politicians have been saying for months: Wall Street boomed in 2025, thanks to growth in artificial intelligence companies and market reactions to the Republican-backed tax and spending bill.
The average bonus ticked up 6% from the previous year, to $246,900, according to the report. That reflects the 30% increase in profits, which increased to $65.1 billion in 2025. Cash-bonus payments increased by nearly 30% between 2023 and 2024.
There are about 200,000 securities industry employees in New York City, the report said. That’s roughly flat from 2024, and is a near-20-year high.
New York state is highly reliant on top earners to fund government programs. The top 2% of taxpayers accounted for just over half the $61 billion of income taxes collected last fiscal year, according to the state tax department.
Most of those people work on Wall Street. DiNapoli said the securities industry accounted for $22 billion in state income tax revenue and $6.7 billion of city tax revenue last fiscal year. Additionally, Wall Street accounted for 20.2% of all economic activity in New York City in 2024.
“These jobs are important,” DiNapoli said.
Gov. Kathy Hochul agrees. The Democrat said she was able to increase spending on child care and Medicaid because of last year’s boom — and that there’s no need to raise taxes. Hochul has said she is resisting calls to increase income and corporate taxes because she doesn’t want to push wealthy taxpayers out of state.
Progressive groups disagree, arguing millionaires don’t move based on taxation. They said the comptroller’s report is the latest sign that wealthy people are getting wealthier and can afford to contribute more to social programs.
“Given [President Donald] Trump’s massive tax cuts for the rich just last year, it’s no surprise Wall Street bonuses are surging while regular New Yorkers are choosing between rent and groceries,” said Divya Sundaram, deputy director of the advocacy group Our Time, which grew out of Mayor Zohran Mamdani’s campaign. “It’s time Governor Hochul stood up to the MAGA billionaire agenda and taxed the rich for a New York we can afford.”
While the number of securities industry jobs in New York held steady, DiNapoli’s report noted the share of U.S. finance jobs located in the Empire State declined again, to 17.4% in 2025. In 1990, 33% of the country’s securities industry was located in New York, according to the report.
DiNapoli declined to weigh in on the debate over raising taxes.
“We're not seeing a dramatic drop in head count, right? So I think the issue is more how do we ensure there's more growth in the city,” he said. “I think we need to take the perspective that New York City being the global capital for finance is a good thing — that we want Wall Street, and those who are employed in it, to be here and to feel welcome here.”
