• What Happened: At a Politico summit March 11, New York Gov. Kathy Hochul begged wealthy New Yorkers who fled to Florida to come back and fund her social programs, saying "cut me the checks" and suggesting supporters "go down to Palm Beach and see who you can bring back home." In 2022, she told Republicans to "jump on a bus and head down to Florida where you belong."
  • Why It Matters: New York's tax base has been gutted by an exodus of high earners fleeing sky-high taxes, crime, and overregulation. NYC Mayor Zohran Mamdani is simultaneously pushing a death tax hike that would drop the exemption from $7.1 million to $750K and raise the rate to 50%, threatening to accelerate the flight.
  • Bottom Line: Margaret Thatcher warned that socialism eventually runs out of other people's money. New York just proved her right.

In 2022, Kathy Hochul had a message for Republicans who did not like the direction of New York. "Just jump on a bus and head down to Florida where you belong," she said. "Get out of town. Because you don't represent our values."

They took her advice. Now she wants them back.

At a Politico New York Agenda Summit fireside chat on March 11, Hochul made a statement that will be played in Republican campaign ads for years. Facing a collapsing tax base as high-net-worth New Yorkers continue fleeing to Florida and Texas, the governor had a message for the wealthy residents her own party drove out.

"I need people who are high net worth to support the generous social programs that we want to have in our state," Hochul said. "There are some patriotic millionaires who stepped up. OK, cut me the checks. But if you want to be supportive, maybe the first step should be to go down to Palm Beach and see who you can bring back home, because our tax base has been eroded."

Read that again. The governor of New York is asking people to physically travel to Palm Beach, Florida, recruit the wealthy former residents her state drove away, and convince them to return so she can tax them to fund her programs.

Law professor Jonathan Turley captured the obvious response perfectly: "There is another novel approach: change your policies to make people want to come back."

Hochul at least had a moment of self-awareness at the summit, admitting what conservatives have been saying for years. "We are in competition with other states who have less of a tax burden on their corporations and their individuals," she said. "Remote work changed everything." She acknowledged Wall Street businesses are looking at Texas and that she has to "be smart about this budget."

What she did not do is propose cutting taxes, reducing spending, or rolling back the regulatory regime that sent the wealthy fleeing in the first place.

The timing could not be worse. NYC Mayor Zohran Mamdani is simultaneously pushing a death tax proposal that would slash the exemption from $7.1 million down to $750,000 and raise the rate to 50%. New York City has 123 billionaires with an average net worth averaging age 67. If Mamdani's plan passes, analysts project a $1 trillion wealth exodus from the city alone.

Hochul's GOP opponent Nassau County Executive Bruce Blakeman delivered the most efficient summary of the situation: "Kathy Hochul finally discovered what New Yorkers already know. When you raise taxes, drive up the cost of living, make it harder to do business, and try to destroy families' savings, people leave. Apparently Hochul's new economic development strategy is to ask them politely to come back." He added: "Palm Beach is lovely this time of year, but I'm not sure former New Yorkers will be eager to trade sunshine, no state income tax, and sanity for the highest taxes in the nation under Kathy Hochul."

High earners who moved to Florida save up to $195,000 a year compared to staying in New York. A 2023 Siena College poll showed 27% of New York residents were already planning to leave in the next five years.

Margaret Thatcher famously warned that the problem with socialism is that eventually you run out of other people's money. New York did not run out. It chased it away. And now the governor is heading to Palm Beach with a hat in her hand.