New State Welcomes NY Transplant Companies
Texas Governor Greg Abbott is openly courting New York businesses as panic spreads through parts of Wall Street over Democratic socialist mayoral candidate Zohran Mamdani and his increasingly aggressive rhetoric toward wealthy investors and corporate leaders.
Abbott’s office made the pitch directly after billionaire hedge fund manager Ken Griffin blasted Mamdani for targeting him in a social-media video promoting a new tax on luxury secondary residences in New York City.
“Governor Abbott is proud to welcome businesses and job creators from across the country to Texas, where we have no state income tax, reasonable regulations, and a pro-growth environment that encourages free enterprise to flourish,” Abbott spokesman Andrew Mahaleris told The New York Post.
Mahaleris warned that policies aimed at punishing successful entrepreneurs would only accelerate the migration already underway from New York to Texas.
“Punitive policies that target successful job-creating entrepreneurs only accelerate the trend of companies choosing Texas,” he said.
The timing is difficult for New York officials because the financial sector has already been drifting south for years. According to data from the nonprofit Partnership for New York City, Texas now employs roughly 519,000 financial-sector workers compared to New York’s 507,000.
Even JPMorgan Chase now reportedly employs more people in Texas than in New York — a symbolic shift that would have been almost unthinkable a generation ago when Wall Street dominated the American financial landscape.
Mamdani intensified tensions after releasing one of his signature social-media videos filmed near Griffin’s $238 million Manhattan penthouse while advocating for a pied-à-terre tax targeting wealthy property owners. Griffin reportedly viewed the stunt as deeply personal and described it as “creepy.”
The backlash from business leaders was immediate.
Griffin and Apollo Global Management CEO Marc Rowan both warned they could expand operations outside New York City, while insiders told The Post that many companies are already quietly scaling back commitments to the city amid concerns about taxes, regulation, crime, and anti-business political rhetoric.
One White House adviser reportedly framed Mamdani’s messaging as a political gift to Republicans heading into the post-Trump era.
“Don’t interrupt your enemy when he’s making a mistake,” the adviser told The Post.
The comments reflect growing concern among moderates and business Democrats that rhetoric attacking billionaires and corporations could further weaken New York’s economic position at a time when cities like Dallas, Miami, Nashville, and Austin are aggressively recruiting financial firms and high-income earners.
Former New York Governor David Paterson delivered some of the sharpest criticism yet against Mamdani and the Democratic socialist movement surrounding him.
“[Mamdani] comes from a household of poor judgment,” Paterson said during an appearance on WABC radio’s “The Cats Roundtable.”
Paterson warned that wealthy taxpayers and business leaders are increasingly discussing relocation, creating anxiety about the city’s long-term tax base and financial stability.
“The resources that have kept the city alive are thinking about moving to other places,” he said.
New York depends heavily on taxes generated by high earners and Wall Street bonuses, making even a modest corporate exodus potentially painful for city finances.
Paterson also argued that many progressive activists harbor resentment toward wealth itself.
“They’re jealous and envious of what [other people] have. That is a terrible way to live your life,” he said.
He criticized comments suggesting billionaires should not exist, warning that such rhetoric fuels division while encouraging investors and employers to protect themselves by leaving.
“I’m hoping they won’t do that,” Paterson concluded.