125,000 wealthy taxpayers left New York for Florida and Texas. The bill: 14 billion dollars less in state coffers
There is a mass shift that is rewriting the fiscal geography of the United States. There are 125,000 wealthy taxpayers, and in some cases billionaires, who have left New York in recent years to move to Florida or Texas. With their exodus, they evaporated well $14 billion in tax revenue. A hemorrhage that now forces Democratic governor Kathy Hochul to deal with all her own contradictions.
The origin of the escape from New York
An (unfairly) almost forgotten film tells in its title exactly what is happening in the USA. It’s about 1997: Escape from New Yorkdirected by John Carpenter, starring the legendary Lee Van Cleef, much better known for his character roles in Sergio Leone’s western films. However, the real phenomenon of recent years has precise roots. The “great escape”, according to experts, began during the pandemic, when New York imposed restrictions considered too rigid by part of the population.
But the real coup de grâce comes in 2022, in the midst of the election campaign. Hochul, then a candidate, addressed an invitation to the Republicans: «Take a bus and go to Florida. That’s your place.” A political exit that has transformed, over time, into a sensational economic boomerang. With rich Republicans who have decided to take the current governor’s “suggestion” literally.
Why Florida is so attractive
The answer is simple, even if its implications are not at all. Florida imposes no state personal income taxes, has no inheritance or gift taxes, and maintains low corporate rates. An overall advantageous tax regime, which attracts entrepreneurs and investors from all over the country.
New York, in comparison, weighs heavily. State income tax can be as high as 10.9 percent for higher incomes. And at the beginning of 2026, the state was among those with the highest combined tax burden in the entire federation. An unenviable record.
How they intend to return the “fugitives” from Florida
Here lies the crux of the matter. High-income taxpayers represent less than one percent of the total, but pay about 41 percent of the overall income tax. Losing them, even in a small part, means losing a lot. It’s a structural dependence that Hochul now openly admits: “I need people with large fortunes to support our state’s generous social programs.”
The project, therefore, involves a pragmatic turning point. The governor asks the “Democrat millionaires” to go to Palm Beach, Florida, to convince the fugitives to return. «Our tax base has suffered an erosion»he states. And he adds: “I have no qualms about raising taxes, but I am competing with states where the tax burden is lower.”
