In April, New York City Mayor Zohran Mamdani filmed a video flouting a newly proposed “pied-a-terre” tax — a fancy name for even more property taxes on the city’s high-end homes. The video specifically called out “this penthouse, which hedge fund CEO Ken Griffin bought for $238 million.”
Only days after the video was released, Mr. Griffin’s company, Citadel, sent city officials a letter stating it might reconsider a $6 billion development project in Manhattan. The project is expected to create 6,000 construction jobs and support another 15,000 permanent jobs in midtown.
Mr. Griffin added that he and his employees paid over $2 billion in city and state taxes and made $650 million in charitable donations to New York City institutions.
After the video went viral, Mayor Mamdani adopted a more conciliatory tone, saying: “I want (New Yorkers) to build businesses, to grow our economy and to create good-paying jobs.” He emphasized that Mr. Griffin “is an important employer and business leader in our city” and expressed hope for his success.
The situation reveals a truth that will surely be hard to swallow for the left: Socialists need capitalists’ money to keep the “warmth of collectivism” burning. After getting elected in 2022, Governor Kathy Hochul, D-N.Y., told the state’s wealthiest residents to “jump on a bus and head down to Florida where you belong.” Between 2019 and 2023, Florida netted over $20 billion in annual adjusted gross income from tax filers fleeing states like New York. The greater Miami area alone enjoyed over $10 billion in new revenue.
By contrast, New York state went from a nearly $9 billion surplus in 2022 to a more than $2 billion deficit by mid-2024. No wonder that earlier this year Hochul found herself hat in hand, begging “patriotic millionaires” to come back to her state.
A report by the National Taxpayers Union Foundation estimates that New York’s relentless campaigns to tax the rich have caused a loss of more than $12 billion in public revenue. The wealthiest 1% of New Yorkers account for about half of the city’s and state’s personal income tax revenue, but officials have no way to fill the revenue gap as they chase these residents out.
The exodus is not limited to the ultra-wealthy. Between 2022 and 2023, Florida and Texas gained over 55,000 and 56,000 new residents, respectively, while California and New York notched the largest migration losses. Young people — often assumed to be the heart and soul of the socialist movement — are also voting with their feet. A 2024 headline stated: “Wealthy millennials are flocking to Florida and Texas — and no one wants to live in New York or California.”
The left would love to have voters believe that their attempts to shake down high earners is some noble cause. It’s merely another ploy to fund their socialist agenda — which is quickly running coffers dry. Their goal isn’t to protect middle-class America; it is to amass power for themselves.
America was built on the principles of free-market competition, which makes our country the envy of the world. Making money isn’t a crime; it’s good for our communities.
As much as Democrats might hate to admit it, they need successful individuals to fund their radical agenda, even as they demonize them.
If history is any indicator, it’s only a matter of time until Mamdani’s next viral video is one pleading with those he chased away to come back. Until then, expect that Americans will continue to seek out states that welcome their hard work rather than penalize it.
