New York State continues to lose thousands of jobs to the more business-friendly environment of Texas, and socialist Mayor Zohran Mamdani’s proposal to raise corporate taxes is likely to intensify that decline, according to an analysis released Tuesday by the Partnership for the City of New York, the leading corporate advocacy organization representing the interests of major firms based in the city.
The New York Post reports the Partnership’s report concludes that Texas’s sustained emphasis on low taxation and pro-growth economic policies has proven successful in attracting corporations disenchanted with New York’s comparatively high tax burdens and stringent regulatory framework. The analysis highlights that New York ranks last among all states in overall tax competitiveness and consistently performs poorly in national assessments of small business creation and expansion. Mamdani’s proposed increase in the state’s corporate income tax, the report warns, would further erode the city’s appeal to employers.
Under the proposal, the corporate tax rate would rise from 7.25% to 11.5%. Including additional levies such as the MTA corporate surcharge, New York City’s top combined marginal corporate tax rate would escalate from 17.44% to 22.48%. In contrast, Texas imposes neither a corporate nor a personal income tax and levies only a modest 0.75% franchise tax.
The study further observes that Texas offers a more favorable legal and regulatory environment for business, with courts that tend to be less litigious and an incorporation process that is comparatively straightforward. These advantages, the report asserts, help explain why Texas is steadily challenging New York’s long-held status as the financial capital of the United States.
The analysis found that Texas has firmly established itself as a growing financial hub. In 2024, the state surpassed New York in total financial services employment, excluding insurance and real estate, marking a major shift in the industry’s geographic balance. Over the past decade, 23 companies have relocated their headquarters from New York to Texas—more than from any other state except California—underscoring the growing appeal of the Lone Star State’s business environment. Leading financial institutions have been key contributors to this trend: JPMorgan Chase now employs more workers in Texas than anywhere else, including its home state of New York, and plans to double its Fort Worth workforce by 2027, according to The Post. Similarly, Wells Fargo expanded in Dallas in 2025, creating space for roughly 1,500 additional employees. The report also noted that financial services recruitment activity in Texas outpaced New York’s by 9% in 2025, further signaling a decisive shift in corporate and employment momentum toward Texas.
Texas’s efforts to consolidate its competitive edge include gaining federal approval to establish its own stock exchange by the end of 2026, which is designed to offer issuers a lower-cost and more flexible alternative to the New York Stock Exchange and Nasdaq.
Partnership CEO Steve Fulop said, “Texas isn’t winning because of one tax lever — it’s executing a coordinated, multi-dimensional strategy to attract jobs and capital and NY is falling into their trap. Our report from TODAY outlines what’s actually happening with how we are losing … facts matter here.”
In response, Mayor Mamdani indicated that he would pursue an increase in property taxes should Governor Kathy Hochul and the Legislature fail to approve higher income and corporate tax rates for affluent individuals and large enterprises. Governor Hochul, who is seeking reelection, has reiterated her opposition to new tax increases.
According to The Post, Mamdani unveiled a record $127 billion New York City budget Tuesday, about $11 billion higher than the current year, featuring a proposed 9.5% property tax increase he called a “last resort” while setting aside $1.2 billion for migrant services, in a preliminary plan presented from the Blue Room at City Hall.
“New York is missing the bigger picture of what other states are deliberately doing as we just talk taxes,” Fulop said of New York, adding, “You can’t just tax people for the sake of taxing people. This approach to pressure the governor [to raise taxes] is a mistake.”
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