Another self-inflicted wound. Just one more reason for those with disposable incomes - i.e., the people who can afford gym memberships and can afford to go out to eat at a restaurant - to move out of NYC and into Nassau county, New Jersey, or Connecticut. Then they'll just commute into NYC for work.
That is damaging to NYC in two respects: (1) it reduces the amount of business being done, and (2) it reduces the amount of NYC income tax, because NYC can only impose its local income tax on NYC residents; it cannot tax non-residents (e.g., people who live in adjoining Nassau County) even if the non-resident earns substantial income from working within NYC.