NYC Business Group Warns of Corporate Exodus Over Mamdani Tax Hikes – Is Virginia Next?

The head of a major New York City business advocacy group is sounding the alarm that companies are already exploring moves out of the city in response to Mayor Zohran Mamdani’s proposed tax increases.

Steve Fulop, CEO of the Partnership for the City of New York, said several large firms — some with over a century of history in the city — are weighing relocations to Florida and Texas, following news that $900 billion asset manager Apollo Global Management is planning a second headquarters in the Sunbelt.

“Apollo’s move is not an isolated case,” Fulop said Sunday on 77 WABC Radio. “It reflects a broader trend tied directly to competitiveness.” He declined to name the firms involved, citing the sensitivity of potential company announcements.

Mamdani, a democratic socialist who took office in January, has proposed hiking income, estate, and corporate taxes to close a projected $5.4 billion budget gap. He has also threatened a 9.5% property tax increase if the state rejects his other proposals. However, the City Council released an analysis last week suggesting the $127 billion budget could be balanced without new taxes.

The Partnership is funding a multi-million dollar ad campaign urging Gov. Kathy Hochul to resist the tax push. Hochul, who faces re-election this year, has so far pushed back on the proposals as state budget negotiations continue.

Is Virginia Next?

As of early 2026, Virginia Governor Abigail Spanberger has faced criticism over a “tsunami” of proposed tax increases introduced by Democratic lawmakers in the state legislature rather than directly proposing them herself. These proposals, aiming to address state revenue needs despite a surplus, include taxing services like dry cleaning, pet grooming, and home repairs, alongside higher income tax brackets and new levies on guns, ammunition, and digital property.

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