New York is shedding 1000’s of jobs to pro-business Texas, and Mayor Zohran Mamdani’s push to lift company taxes would solely speed up the exodus, an evaluation launched Tuesday by the Large Apple’s prime company advocacy group claims.
The report issued by the Partnership for the Metropolis of New York concludes that the Lone Star State’s low-tax, pro-growth insurance policies are efficiently recruiting firms and diverting jobs from Wall Road companies fed up with Gotham’s high-tax, business-hostile insurance policies.
“New York is already ranked final nationally for tax competitiveness and is constantly ranked among the many backside states for beginning a small enterprise and for small enterprise development,” the partnership’s report mentioned.
Comply with dwell updates on Mayor Zohran Mamdani’s socialist agenda and the newest in NYC politics
Mamdani has proposed growing New York’s company charge from 7.25% to 11.5%.
New York Metropolis’s prime mixed marginal company revenue tax charge — which incorporates different levies equivalent to an MTA company surcharge — would rise from 17.44% to 22.48%, if Gov. Kathy Hochul and the legislature approve a hike.
Texas, in the meantime, has no company or state revenue tax and imposes solely a modest 0.75 franchise tax.
Courts within the Lone Star State are additionally extra pleasant to enterprise pursuits, in comparison with litigation-happy New York, and it’s simpler to include and open companies there, the report famous.
It shouldn’t come as a shock, then, the Partnership mentioned, that Texas is chipping away at New York’s preeminence because the capital of US capitalism.
The report discovered that:
- In 2024, Texas surpassed New York because the state with probably the most monetary providers staff, excluding insurance coverage and actual property.
- 23 firms relocated their headquarters from New York to Texas during the last decade, second solely to companies from California, which is far nearer to the Lone Star State.
- JPMorgan Chase now employs extra folks in Texas than in some other state, together with its dwelling state of New York. The banking big introduced final yr a brand new Fort Value workplace that can double worker capability by 2027.
- Wells Fargo opened a brand new Dallas campus in 2025, growing workplace capability by 1,500 staff.
- Monetary providers recruitment in Texas surpassed New York’s with 9% extra job postings in 2025.
- Whereas New York’s monetary providers trade nonetheless stays extra productive — producing $330 billion in gross regional product in 2024, 71% greater than Texas — Texas’ monetary providers sector grew sooner over the last decade, with GRP rising 121% in comparison with New York’s 72%.
- Texas obtained approval to launch its personal inventory change, slated to open by the top of 2026, positioning itself as a extra issuer-friendly and lower-cost change than the New York Inventory Change and Nasdaq.
“Texas isn’t profitable due to one tax lever — it’s executing a coordinated, multi-dimensional technique to draw jobs and capital and NY is falling into their entice,” mentioned Partnership CEO Steve Fulop. “Our report from TODAY outlines what’s really taking place with how we’re shedding … info matter right here.”
Mamdani on Tuesday mentioned he’d must increase property taxes if Hochul and the legislature don’t increase revenue taxes on the wealthy and company taxes.
Hochul, who’s looking for re-election this fall, mentioned she opposes tax will increase.
“At a second when development choices are more and more cell, tax coverage can’t be seen in isolation. New York is lacking the larger image of what different states are intentionally doing as we simply discuss taxes,” Fulop mentioned.
“You possibly can’t simply tax folks for the sake of taxing folks,” he mentioned. “This strategy to strain the governor [to raise taxes] is a mistake. I definitely perceive the strain across the price range, however this strategy misses the bigger aggressive actuality and can value extra in the long term.”
