Former New York Gov. Andrew Cuomo said New York risks driving away residents, businesses, and investment if state leaders continue adopting policies that increase taxes on high-income individuals and corporations.
Cuomo made the remarks during an interview [1] with FOX Business, where he discussed New York’s economy, Democratic Party politics, and proposals supported by New York City Mayor Zohran Mamdani.
Speaking with host Maria Bartiromo, Cuomo argued that government should focus on delivering basic services while creating conditions that encourage businesses and residents to remain in the state.
“Pick up the garbage, fill the potholes, 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 said.
One of the policies Cuomo criticized was the proposed pied-à-terre tax announced in April by Mamdani and New York Gov. Kathy Hochul.
The proposal would apply an annual tax to luxury second homes valued at $5 million or more.
According to supporters of the proposal, the tax is projected to generate approximately $500 million annually from qualifying out-of-state property owners.
Mamdani has said the revenue would help fund programs including free childcare while also supporting cleaner streets and safer neighborhoods.
Cuomo argued that proposals promising expanded government benefits without identifying sustainable funding sources could create long-term economic challenges.
“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.”
He added, “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.”
The interview also addressed population trends in New York. According to the Citizens Budget Commission, New York City experienced a net loss of approximately 114,000 residents during 2025 after more residents left the city than moved into it across all income levels.
Cuomo suggested that tax policy and the broader business climate are contributing factors in residents and companies relocating to lower-tax states in the South.
The former governor also discussed what he described as growing ideological divisions within the Democratic Party.
“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,” Cuomo said.
Reflecting on his tenure as governor, Cuomo argued that his legislative record included a number of progressive policies despite criticism from some members of today’s Democratic coalition.
“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.”
In addition to discussing state politics, Cuomo recently appeared on FOX Business to advocate for blockchain legislation and his work with cryptocurrency exchange OKX, urging Congress to advance the CLARITY Act.
The interview highlighted Cuomo’s views on New York’s economic direction, ongoing debates over taxation, and ideological divisions within the Democratic Party as state leaders continue debating proposals affecting housing, public spending, and economic development.