Mayor Pushes for Tax Increases Despite State Budget Proposal
Mayor Zoran Mamdani expressed skepticism over Governor Kathy Hochul’s state budget plan, which aims to avoid raising income taxes. He announced his intention to advocate for these increases nonetheless.
This move is part of Mamdani’s strategy to align himself with Hochul and her more liberal supporters, focusing on attracting wealthy New Yorkers and raising significant funds for various initiatives, such as providing free bus rides.
At a news conference in Manhattan, he stated, “Our administration is preparing to make the case that it’s time for New York’s most profitable companies and its wealthiest residents to pay their fair share.”
These remarks followed Hochul’s unveiling of a $260 billion budget for New York, made amidst pressures from both the left and right as elections approach. The budget included a universal preschool plan, which garnered support from Mamdani and his allies.
However, the mayor feels this isn’t sufficient, noting that while the state collects over half of its tax revenue from New York City, only a fraction returns to the city. He emphasized that any tax hikes in New York would need Albany’s approval.
“What we’re trying to do is address long-standing fiscal issues, which involve the need for increased revenue from high-income residents, as well as improving the relationship between City Hall and Albany,” he explained.
Mamdani, who just took office three weeks ago, is already dealing with a projected $12.6 billion budget deficit over the next two years. He pointed fingers at former Mayor Eric Adams for the city’s financial problems, although he acknowledged the state’s financial stability.
“I think the governor has a fiscal stewardship responsibility. The state’s strong financial foundation supports our city’s tax base,” he remarked. But he believes the city’s troubles stem directly from Adams’ poor fiscal decisions.
His comments are another critique of Hochul, who is attempting to cater to both moderate and liberal party members. The governor is facing challenges within her own party, particularly from Lt. Governor Antonio Delgado, who is campaigning from a more leftist stance.
Nassau County Executive Bruce Blakeman, a Republican, has quickly seized upon the situation, portraying Hochul as too aligned with the left wing of her party.
Hochul had previously endorsed Mamdani during the 2025 election but later faced chants of “tax the rich” from supporters at a gathering.
Despite Mamdani’s advocacy for higher taxes on the affluent and corporations, a report from City Auditor Mark Levin indicates that tax revenue actually increased by 7% in fiscal year 2026.
Levin noted, “This isn’t because of a failing economy; it’s due to budget decisions made by the previous administration, and we’ll need to address that.”
While Hochul hasn’t entirely dismissed the possibility of future tax hikes post-election, her Budget Director Blake Washington reiterated that this should be considered a last resort.
“She sees it as a last resort where she can raise taxes on anyone at any time,” Washington commented.
