New York’s governor openly urged wealthy former residents to come back so the state can tax them, sparking a viral reaction and a debate over how high taxes and policy choices push people and businesses away.
Gov. Kathy Hochul’s public plea that the rich return to support “generous social programs” landed like a confession about the consequences of New York’s tax strategy. The short clip made headlines because a Democrat plainly linked the state’s spending priorities to the need for high-net-worth taxpayers to stick around or be coaxed back. That admission cut through the usual political spin and raised real questions about how sustainable those programs are when the tax base is mobile.
“And being conscious of the fact that I need people who are high net worth to support the generous social programs that we want to have in our state,” Hochul said. “Right now, there are some patriotic millionaires who stepped up. OK, cut me the checks if you want to be supportive. But maybe the first step should be to go down to Palm Beach and see who you can bring home, because our tax base has been eroded… I have to look at the fact that we are in competition with other states who have less of a tax burden.”
Hochul’s words were blunt and political. Instead of offering reforms to make New York more business-friendly or to curb runaway spending, the pitch boiled down to asking wealthy people to return so the state can keep funding its current agenda. Voters watching that logic saw the problem: if taxes and costs push people out, the only answer left to Democrats is to beg for the taxpayers back rather than change the policies that sent them packing.
Remote work after COVID accelerated what the governor acknowledged: high-earners and firms relocated to lower-tax states without sacrificing their income. “There were people who could only work in an office in Manhattan and work in New York state. And they were captives to our state, they were going to stay. We saw that that’s not the case. Wall Street businesses looking at Texas, they’re not going there because they have a nicer governor. They’re going there because of the tax rate.” That plain truth undercuts the idea that state leadership alone can keep businesses regardless of tax policy.
At the same time New York is talking about coaxing the wealthy home, the city’s fiscal picture shows how expensive current policies are. A recent comptroller report found that spending on the homeless population in New York City reached $81,705 per person last year, up from $28,428 six years ago. Those numbers reflect a system that pours massive money into services while failing to deliver sustainable results or incentives for people to change behaviors.
Meanwhile, local proposals would squeeze residents further to cover rising costs. In New York City, Mayor Zohran Mamdani has pushed plans to increase property taxes, narrow the death tax exemption, and hike the death tax rate from 16 percent to 50 percent. That kind of tax talk sends a clear message: if you create a policy environment where wealth is punished, people and businesses will respond by leaving or shielding assets.
This mix of high spending, heavy taxation, and public appeals to the wealthy creates a cycle that is hard to break. Asking people to return to be taxed more is a short-term bandage, not a structural fix, and it risks accelerating the very flight officials say they want to reverse. Conservative critics argue the answer is to cut waste, simplify taxes, and restore predictable economic rules so entrepreneurs and families have reasons to stay beyond charity checks.
The political reality is simple: capital and talent are mobile, and they vote with their feet. States that offer competitive tax rates and accountable budgets tend to attract businesses and individuals who want stability and predictability. New York’s current path, highlighted by the governor’s plea, makes the state look like it relies on sympathetic donors rather than sustainable policy to fund its ambitions.
