Hochul tax plan targets high-end second homes amid revenue pressures
Gov. Kathy Hochul says she needs high-net-worth residents to fund the state's generous social programs
Hochul proposes new tax on second homes; critics warn of economic fallout
FOX Business' Madison Alworth joins ‘The Big Money Show’ to report on New York Gov. Kathy Hochul’s proposed NYC second-home tax.
A new tax proposal targeting high-end second homes in New York City is drawing renewed attention to the growing financial pressures facing the state as leaders look for new revenue streams to close persistent budget gaps.
FOX Business’ Madison Alworth joined "The Big Money Show" to report on the proposal, which would apply to second homes in New York City valued above $5 million, imposing an annual surcharge on properties that are not used as primary residences.
Taxpayers in highly regulated states are 'really getting hit hard,' economist says
The Lonski Group President John Lonski discusses the cost of regulation and breaks down the March PPI report on 'Varney & Co.'
The measure comes as state leaders grapple with an estimated $2.2 billion budget deficit in New York state, while also confronting a shrinking tax base tied to the out-migration of high-income residents.
BILLIONAIRES AND BUSINESSES FUEL GROWING EXODUS FROM BLUE STATES
Policymakers have increasingly pointed to wealthy taxpayers as a key source of revenue to sustain public spending commitments.
Governor Kathy Hochul speaking during the 2026 State of the State (Steve Pfost/Newsday RM / Getty Images)
"I need people who are high-net-worth to support the generous social programs that we want to have in our state," New York Gov. Kathy Hochul told Politico in March.
"If you want to be supportive … the first step should be go down to Palm Beach and see who you can bring back home because our tax base has been eroded."
RED & BLUE DIVIDE: STATES PUSH COMPETING TAX PLANS AS VOTERS WEIGH CHANGES IN ELECTION CYCLE
Massachusetts town votes on shocking 50% property tax hike
FOX Business' Gerri Willis joins 'Varney & Co.' to report on South Hadley, Massachusetts, residents voting on a 50% property tax hike as retirees warn of being priced out and a broader tax revolt grows nationwide.
The proposal aims to generate roughly $500 million annually, though industry groups argue the broader economic impact could extend beyond targeted homeowners, potentially affecting construction activity, property values and overall costs.
The debate underscores a wider tension playing out across high-tax states, where efforts to raise revenue are increasingly intersecting with concerns about competitiveness, investment and long-term economic growth.
FOREIGN BUYERS EYE LUXE LA HOMES AS PROPOSED WEALTH TAX PUSHES BILLIONAIRES OUT OF CALIFORNIA
Blakeman's race versus Hochul tightens as New York faces exodus, tax backlash
New York gubernatorial candidate Bruce Blakeman discusses how he plans to defeat Kathy Hochul and addresses New York tax and regulatory issues on 'Mornings with Maria.'
