New York vs. Texas in the Battle for Billionaires
AOL.com reported Sunday that Texas Governor Greg Abbott is actively recruiting businesses and executives fleeing New York City, as Mayor Zohran Mamdani advances a new wealth tax targeting luxury properties.
The friction centers on Mamdani’s proposal to levy annual fees on non-primary residences valued above $5 million. The plan drew national attention after Mamdani filmed himself outside a Central Park South penthouse owned by Citadel founder Ken Griffin, highlighting it as a prime example of the properties he wants to tax.
Griffin Pushes Back Hard
Griffin paid a record $238 million for the 24,000-square-foot Manhattan apartment. He has since described Mamdani’s video stunt as “creepy and weird,” saying he watched it multiple times. At the Milken Institute Global Conference earlier this month, Griffin signaled Citadel may abandon its planned $6 billion Manhattan office tower. He added that expanding in Florida was “unquestionably” the right decision.
The standoff echoes Griffin’s earlier departure from Chicago, where escalating crime and hostile tax policy drove him to relocate Citadel’s global headquarters. New York officials are watching that history closely.
Abbott Seizes the Moment
Abbott’s press secretary told media outlets that Texas offers no state income tax, lighter regulation and a “pro-growth environment.” His office framed Mamdani’s policies as exactly the kind of “punitive” measures that accelerate corporate relocations to the Lone Star State.
The governor’s pitch is not without recent wins. Dell Technologies last week announced it would reincorporate in Texas, moving its legal home from Delaware. Abbott publicly celebrated the move and predicted more companies would follow.
A Pattern Backed by Data
Texas’ per-capita economic output rose more than 10% between 2021 and 2024, according to federal figures, outpacing gains in higher-tax states. That growth has sharpened the contrast Abbott uses in his recruitment pitch.
What New York Stands to Lose
For New York City, the risks are not trivial. Even a limited migration of high-earning residents and financial firms could erode the city’s tax base materially. The city draws an outsized share of income-tax revenue from a small number of very high earners. Mamdani has also proposed city-owned grocery stores, free buses and stronger tenant protections, a platform that critics argue compounds the pressure on business confidence.
The debate over how far New York can push taxation before capital and talent migrate is not new. But the Griffin confrontation has given it a sharper, more public edge than it has had in years.
Read Next: Fed Holds Rates Steady as Inflation Data Keeps Pressure On
