A blunt warning from Wall Street’s top ranks is landing squarely on City Hall.
Jamie Dimon, CEO of JPMorgan Chase, is sounding the alarm that rising taxes and regulatory pressure could drive a “large exodus” of businesses and jobs out of New York City.
In his annual shareholder letter, Dimon framed the issue as simple economics, not politics.
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“Cities — like individuals, companies, and countries — need to compete,” he wrote. “No matter who you are, you need to deal with reality and the truth.”
The truth, he argued, is that New York’s tax burden is already among the highest in the country.
“It also has the highest city and state corporate taxes and the highest individual income and state taxes,” Dimon noted, pointing to a structural disadvantage as companies weigh where to invest.
The comments come as Mayor Zohran Mamdani pushes an aggressive tax agenda after campaigning on promises to “tax the rich.”
His proposals include raising the city’s corporate tax rate from 7.25% to 11.5% and adding a 2% income tax surcharge on individuals earning over $1 million annually.
Those changes would require approval from Kathy Hochul, as the city grapples with a projected budget gap that Mark Levine has estimated could reach $12 billion within two years.
Dimon’s message was clear: higher taxes come with trade-offs.
“Higher taxes mean lower returns on capital and less competitiveness by their nature,” he wrote.
And, he added, the shift may already be underway.
“You can already see a fairly large exodus of people and jobs out of some states with high taxes and high expenses.”
That concern is increasingly echoed by business leaders tracking relocation trends.
Apollo Global Management, led by CEO Marc Rowan, has reportedly explored expanding in lower-tax states like Texas and Florida — part of a broader pattern of firms diversifying away from high-cost urban centers.
Partnership for the City of New York CEO Steve Fulop warned the trend reflects growing frustration among employers.
“It reflects a broader trend tied directly to competitiveness,” Fulop said, adding that some policymakers appear “tone deaf” to long-term economic pressures.
City Hall, however, is pushing back.
A spokesperson for Mamdani argued New York remains unmatched as a business hub, while acknowledging rising affordability pressures.
“When working people and young families cannot afford housing… we are undermining the foundation of our own economy,” the spokesperson said, framing the tax push as part of a broader cost-of-living strategy.
