Former New York Governor Andrew Cuomo issued a stark warning to local leadership, arguing that the rise of Democratic socialist policies and aggressive new taxes on high-net-worth residents is directly causing capital to flee to low-tax red states.
Speaking in an exclusive FOX Business interview, Cuomo said that the current political climate is actively chasing wealth and corporations out of the Empire State in favor of southern tax havens, leaving mainstream Democrats divided over the party’s economic future.
“Pick up the garbage, fill the pothole[s], do your job. Bring people to New York, create jobs, don’t demonize corporations. Don’t demonize the rich. Don’t chase people out of New York, which is exactly what [Mamdani] is doing. And you’re seeing the wealth transfer to southern states,” Cuomo told Maria Bartiromo.
In April, New York City Mayor Zohran Mamdani and New York Gov. Kathy Hochul unveiled a joint legislative proposal targeting luxury second homes worth $5 million or more. Known as a pied-à-terre tax, the annual surcharge is expected to generate an estimated $500 million from affluent out-of-state property owners.
ANDREW CUOMO WARNS CONGRESS IS RUNNING OUT OF TIME ON BLOCKCHAIN REGULATION, SAYS FAMILIES COULD SAVE ON FEES
Mamdani has previously said revenue from the tax would go toward initiatives such as free childcare, cleaner streets and safer neighborhoods.
“Socialism has not worked anywhere on the globe,” Cuomo said. “Promises of free lunch, free buses, free rent, free everything. There is no such thing as ‘free.’ Someone always pays. This is a dream. This is nirvana. This is utopia, and they’re selling to young people who are buying it. But it’s not going to work. And this socialist movement is the best thing the Republicans have going for them.”
“It is a major problem for the Democrats. And again, I think the energy comes from the anger of Trump, and they’ve misdirected that anger. But it is a real problem for the Democrats, and as I said before, it’s the best thing the Republicans have going for them,” he added.
According to the Citizens Budget Commission, New York City lost more residents across all income levels than it gained throughout 2025. The city’s population posted a net loss of 114,000 residents.
Cuomo said he increasingly finds himself politically estranged from the modern Democratic Party, which he said has adopted highly disruptive regulatory and economic agendas.
“The Democratic Party is in the middle of the Civil War, right? And you have moderate mainstream Democrats such as myself, which have been challenged by the far-left extremists,” the former governor said.
“I’m too moderate for the Democrats, which is ironic, since I had the most progressive record as governor in the United States of America,” Cuomo said while noting his anti-discrimination and minimum wage legislation. “It’s not about facts. It’s not about merits. It’s about the politics of the moment, and right now, socialism is cool.”
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