Fox News host Brian Kilmeade and financial analyst Jackie DeAngelis discussed the potential consequences of a proposed tax increase in New York, warning it could accelerate the departure of residents and businesses while straining household finances.
“You said this is distressing,” Kilmeade began.
“Oh, very distressing,” DeAngelis replied.
“And what I noticed in that sound bite, you guys called it an ultimatum. I go as far to call it a threat, and I don’t like to see elected officials threatening each other in this way.”
DeAngelis said Gov. Kathy Hochul is weighing political and economic risks.
“Hochul is worried about her re election, and she knows that a tax hike in any way, shape or form, will not be received well by voters,” she said.
“So this isn’t just about her winning. It’s that people don’t want it, and he doesn’t get that message.”
Kilmeade suggested the tax could move forward regardless of political considerations.
“But he’ll probably do it if she wins and breeze Bruce Blakeman, she’ll probably do it anyway, just like the whole congestion pricing thing, which wouldn’t do,” Kilmeade said.
“And it was a debacle,” DeAngelis added.
Kilmeade outlined the first option under discussion.
“So let’s break this down. Option one, number one, tax the wealthy raise the taxes already on corporations were already one of the most unattractive tax states in the country can only be approved by the state government,” he said.
“That’s where Kathy Hochul comes in, but so does the legislature and the governor. Hochul has insisted she isn’t in favor of that, but she’s already given a little bit on child care too.”
DeAngelis argued that even limited concessions could trigger broader consequences.
“Yes. And what she’s trying to do is the reasonable, sensible thing,” she said.
“But that’s when he pivots and he says, Okay, if you don’t give me what I want, here’s what I’m going to do. And this is what is distressing, because this ends up hurting the people, many of them that he proposed that he would help with affordability, because these 3 million homes that are going to get hit with this real estate tax, these are not all millionaires.”
She continued, “These are a lot of very normal people that will end up not being able to afford to live here, they will flee the city, and the problem gets worse.”
Kilmeade pointed to migration trends.
“And they are already fleeing the sea for Texas, and including major corporations like JP Morgan, believe it or not, has more people in Texas right now, their Dallas building than that mammoth building a few blocks from here, because it pays to move the people to Texas where the there is no state tax,” he said.
DeAngelis said both tax options could drive businesses away.
“And I just want to make the point, because you’re bringing up a great point about businesses,” she said.
“That’s why either of these options is a terrible option, and he needs to just abort and move on to something else. Because if you go with option one, which Hochul is fighting, more businesses will leave.”
Kilmeade then referenced other potential measures.
“He looks at businesses as a problem. He looks at renters. He said he also has a plan in place. He wants to freeze the rent. Look out for that extra measures that he could be doing if he has to go to a plan B,” Kilmeade said.
“He says he’s got, he’s got to propose pulling 1.2 billion from the city’s rainy day fund, which I feel a debt. I didn’t know you had a rainy day fund and retire health care savings. What is that?”
DeAngelis responded by warning against using reserve funds.
“I mean, you hurt the retirees the rainy day fund. They do this all the time with the SPR. Joe Biden did it in an oil perspective, right? They would just drain down the SPR. It’s there for emergencies,” she said.
“Things can happen. Hurricane Sandy, we had 911 I never want to see those things happen again. But that’s what rainy day funds are for.”
Kilmeade contrasted New York’s budget with Florida’s.
“And of course, New York City’s latest budget 127 billion. Give you an idea. Florida has $117 billion dollar budget,” he said.
“Population, almost three times, and you’ve got a budget that’s lower. How is it possible for a city to be spending this much?” DeAngelis said.
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