Hochul Admits the Problem
At a recent public appearance Governor Kathy Hochul made a frank admission. Wealthy New Yorkers have been leaving the state and she says she needs them to return to help pay for New York’s generous social programs. That is not the sort of political spin you hear every day. It is an acknowledgement that high taxes and expensive policy promises have consequences when people vote with their feet.
Why People Are Leaving
Many families and entrepreneurs are moving to states like Florida and Texas because they get more for their money. Lower taxes, lighter regulation, and less crime are part of the package that makes the move attractive. When high earners take their jobs and investments with them the state loses more than just tax revenue. It loses economic activity that supports jobs, small businesses, and the local tax base.
The Tax Fight in Albany
The budget showdown in Albany has become a fight over whether to raise taxes on wealthy individuals and corporations. Progressive leaders in New York City want higher levies to fund pricey agendas while Governor Hochul warns against taxing simply for the sake of taxing. Both sides claim they are protecting services, but the real question is which approach will keep people and capital in the state instead of driving them away.
The Political Angle
Mayor Zohran Mamdani is pushing for bigger tax hikes inside the city just as the governor asks wealthy residents to return. That is a political contradiction that voters can see. If you make life and business more expensive you should not be surprised when people relocate. Competition between states was meant to encourage better government. New York is now testing whether voters prefer bold promises or practical results.
Economic Reality Versus Promises
There is a simple lesson here. A state can promise everything and pay for nothing. At some point people respond to incentives. High earners have options and they are exercising them. If New York wants to keep wealth and jobs it will have to find a balance between funding services and remaining a place where people and businesses choose to stay rather than being begged to return.
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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