Sorry, Kat — they’re voting with their feet.
Gov. Kathy Hochul is openly worrying that New York’s richest residents are slipping away and taking the state’s tax base with them, even as Mayor Zohran Mamdani and Albany’s left flank push for higher taxes on top earners.
At a Politico forum in Albany, Hochul warned that New York is competing with lower-tax states and suggested the state should be trying to lure back wealthy defectors now living in places like Palm Beach.
“What I want to make sure, we are smart about is having a system in place where it’s not just taxing for the sake of taxing,” Hochul said.
“I need people who are high net worth to support the generous social programs that we want to have in our state.” She then added: “The first step would be, OK, go down to Palm Beach and see who you bring back home because our tax base has become eroded.”
The remarks came as Mamdani has kept pressing Albany for new revenue tied to the wealthy, arguing the city is staring at a $5.4 billion fiscal deficit.
In February, the mayor publicly said the city faced a “$5.4 billion” gap and signaled that higher taxes on top earners were part of the discussion.
That tension is now out in the open: Mamdani’s camp wants more money from the top, while Hochul is warning that squeezing high earners harder could send even more of them packing.
Hochul also said New York is “in competition with other states that have less of a tax burden on their corporations and their individuals,” underscoring the balancing act facing Democrats who want expansive spending without accelerating tax flight.
The broader budget picture is also getting uglier. New York City’s preliminary FY 2027 budget is about $127 billion, and the city comptroller has warned of sizable out-year risks even beyond City Hall’s own projections.
Watch the clip below:
Kathy Hochul making a weak plea for wealthy people who have left New York (to red states like Florida) to come back to pay their high taxes to fund failing (unaccountable) social programs:
“I need people who are high net worth to support the generous social programs we have in… pic.twitter.com/7quhsFyWyn
— Matt Whitlock (@MattWhitlock) March 18, 2026
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