Kathy Hochul pleads with rich New Yorkers to move back from Florida and fix ‘eroded’ tax base — now her 2022 jab to ‘jump on a bus’ has resurfaced

“What I want to make sure we are smart about is having a system in place where it's not just taxing for the sake of taxing and being conscious of the fact that I need people who are high net worth to support the generous social programs that we want to have in our state,” she said (1).

At the same time, she pointed to signs that New York’s tax base has weakened as some affluent residents have relocated — particularly to low-tax states like Florida.

“Our tax base has been eroded,” Hochul said, suggesting that those looking to help should “go down to Palm Beach and see who you can bring back home.”

She also acknowledged the competitive pressure New York faces from other states with lighter tax burdens.

“We are in competition with other states who have less of a tax burden on their corporations and their individuals,” she said, adding that the rise of remote work has made it easier for people and businesses to leave.

Hochul pointed to Wall Street firms exploring moves to places like Texas as an example, arguing that tax policy plays a major role in those decisions.

“They're not going there because they have a nicer governor — I know that for sure — but they're going there because of the tax rate,” she said.

States like Texas and Florida have long marketed themselves as lower-tax alternatives to high-cost states like New York. Both Texas and Florida levy no personal income tax, which can be especially attractive to high earners, while also maintaining relatively business-friendly tax and regulatory environments.

‘Get out of town’

Hochul’s latest comments stand in sharp contrast to remarks she made in 2022, when she took aim at political opponents and told them to leave the state.

“And we are here to say that the era of Trump and Zeldin and Molinaro — just jump on a bus and head down to Florida where you belong, OK?” Hochul said at the time, taking aim at her Republican gubernatorial opponent Lee Zeldin, then-congressional candidate Marc Molinaro and Donald Trump (2). “Get out of town. Because you do not represent our values. You are not New Yorkers.”

Those comments, made during a heated political moment, are now resurfacing as Hochul strikes a more pragmatic tone — emphasizing the importance of keeping high earners in the state to support public spending (3).

‘An obligation to pay as little tax as possible’

While relocating to a lower-tax state can potentially help high earners keep more in their pockets, wealthy households rarely rely on that alone to reduce their tax bills.

For decades, high-net-worth individuals have used proven strategies — and specific types of assets — to legally slash what they owe to the IRS. According to a report from ProPublica, some billionaires in the U.S. paid little or no income tax relative to the vast fortunes they’ve amassed (4).

That's largely because billionaires build their wealth through assets — not wages. As the value of these assets rises, their net worth grows, but the U.S. tax system isn’t designed to fully capture those gains. Capital gains are typically taxed at lower rates than regular income and taxes aren't owed until the assets are sold.

In fact, as NYU Stern professor Scott Galloway once put it, if you’re trying to build wealth, you have “an obligation to pay as little tax as possible.”

One asset class America’s wealthy have relied on for decades is real estate — in part because of the generous tax treatment it receives.

When you earn rental income from an investment property, you can claim deductions for a wide range of expenses, such as mortgage interest, property taxes, insurance and ongoing maintenance and repairs.

Real estate investors also benefit from depreciation — a tax deduction that recognizes the gradual wear and tear of a property over time. Investors can also use tools like refinancing and 1031 exchanges to keep their capital compounding instead of cashing out.

Today, you don’t need to be a millionaire — or even to buy a single property outright — to invest in real estate. Mogul is a crowdfunding platform that offers an easier way to get exposure to this income-generating asset class.

The real estate investment platform offers fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.

Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

You can sign up for an account and then browse available properties here.

Another option is Lightstone DIRECT, which offers accredited investors access to institutional-quality multifamily and industrial real estate — with a minimum investment of $100,000.

Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest privately held real estate investment firms in the U.S., with more than $12 billion in assets under management.

Over nearly-four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles — including a 27.6% historical net IRR and a 2.54x historical net equity multiple on realized investments since 2004.

With Lightstone DIRECT, you gain access to the same multifamily and industrial deals Lightstone pursues with its own capital.

Here’s the kicker: Lightstone invests at least 20% of its own capital in every deal — roughly four times the industry average. With skin in the game, the firm ensures its interests are directly aligned with those of its investors.

Keep more of what you earn

The wealthy don’t just focus on what they invest in — they also pay close attention to where those investments sit. Using tax-advantaged retirement accounts can be a powerful way to keep more capital compounding over time.

For instance, traditional IRAs and Roth IRAs allow investments to grow either tax-deferred or tax-free, depending on the account type.

For seasoned investors with portfolios of $50K or more, you might consider diversifying your nest egg through a flat-fee self-directed retirement account.