NYC Business Leaders Warn of Exodus Over Tax Hike Crusade

Partnership for NYC CEO says major firms exploring options to leave amid Mayor Mamdani's proposed tax increases

Apr. 5, 2026 at 6:23pm

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The head of a prominent New York City business advocacy group warned that many corporations are considering relocating or shifting jobs out of the city due to Mayor Zohran Mamdani's push for billions in tax hikes on corporations and the wealthy. Steve Fulop, CEO of the Partnership for the City of New York, said several major companies have indicated they are 'exploring options' in lower-cost states like Florida and Texas.

Why it matters

Mamdani's tax hike proposals, which include raising income taxes on the wealthy, boosting the estate tax, and increasing the corporate tax rate, have faced pushback from the business community. The potential exodus of major firms and jobs from NYC would deal a significant blow to the city's economy and tax base.

The details

Fulop said Apollo Global Management, a $900 billion asset manager, is plotting a second U.S. headquarters in the Sunbelt, and several other 'major New York City brands that have been headquartered here for 100 years' are also 'down the road of leaving.' While Fulop declined to name specific companies, he said the trend is 'not an isolated case' and reflects a broader concern over New York's competitiveness and affordability crisis. The Partnership is launching a multi-million dollar ad campaign to urge Governor Kathy Hochul to resist Mamdani's tax hike proposals.

  • The state budget was due on April 1, but negotiations between Hochul and the Democratic-led legislature are ongoing.
  • During his mayoral campaign, Mamdani proposed raising the top corporate income tax rate from 7.25% to 11.5%.
  • Mamdani has also proposed increasing the city's corporate tax from 9% to 10.8% on financial firms and 8.85% to 10.62% on non-finance sectors.

The players

Steve Fulop

CEO of the Partnership for the City of New York, a prominent business advocacy group.

Zohran Mamdani

The Democratic socialist mayor of New York City who has proposed a series of tax hikes on corporations and the wealthy.

Kathy Hochul

The Democratic governor of New York who is up for re-election this year and has resisted Mamdani's push for tax increases.

Jamie Dimon

The CEO of JPMorgan Chase, who has said New York State's high-tax climate puts it at a competitive disadvantage.

Apollo Global Management

A $900 billion asset management firm that is reportedly plotting a second U.S. headquarters in the Sunbelt.

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What they’re saying

“'In the last week, there have been several [major companies] in the Partnership that have said they're going down the same road [as Apollo], exploring options in Florida and Texas.'”

— Steve Fulop, CEO, Partnership for the City of New York

“'What I can say clearly and unequivocally is that Apollo's move is not an isolated case. It reflects a broader trend tied directly to competitiveness and business leaders feel that some elected officials are tone deaf to the broader economic environment and have no realistic long term plan to fix the affordability crisis beyond raising costs which will only further the challenges.'”

— Steve Fulop, CEO, Partnership for the City of New York

“'You need to be able to communicate broadly how fragile the economy is and that some of these legislators who are pushing tax increases for the sake of tax increases are really not thinking about the long-term best interests of the city and region.'”

— Steve Fulop, CEO, Partnership for the City of New York

What’s next

The state budget negotiations between Governor Hochul and the Democratic-led legislature are ongoing, with the final outcome determining whether Mamdani's proposed tax hikes will be approved.

The takeaway

The potential exodus of major corporations and jobs from New York City due to Mamdani's tax hike crusade highlights the delicate balance between funding government programs and maintaining a competitive business environment. The city's economic future hangs in the balance as this political battle plays out.