The last hundred days have really been quite the ride.
Mayor Zoran Mamdani, who promised to only tax the wealthy, has, in fact, backed new tax initiatives that add up to at least $23 billion, impacting even middle-class residents of New York.
The Democratic Socialists came into office with a plethora of promises, suggesting that all these expenditures could be funded by taxing the city’s wealthiest individuals and large corporations.
Once in office, Mamdani shifted the conversation about taxes toward addressing a budget deficit—initially pegged at $12 billion, but later reduced to $5.4 billion.
He even went as far as to suggest an almost 10% property tax increase across the city if his “tax the rich” plan wasn’t prioritized. This drew frustration as he accused City Council President Julie Menin, a moderate Democrat, of favoring cuts to city services over his tax proposals, leaving many confused.
“He’s a smart guy and seems to know his stuff, but he’s stumbled through some rookie errors due to inexperience, like hinting at an unrealistic property tax hike and unnecessarily lashing out at the City Council president,” remarked Andrew Kurtzman, a public relations pro.
Here are some of the tax proposals Mamdani is advocating:
Taxing the wealthy and corporations.
Central to Mamdani’s proposals is a push for a 2% increase in the city’s income tax for individuals earning $1 billion or more.
Additionally, he wants to raise corporate tax rates to 10.8% for financial companies and 10.62% for non-financial ones, with projections suggesting a potential $4.5 billion increase for the city’s coffers.
However, any such changes would need Albany’s approval.
Gov. Kathy Hochul, who’s running for re-election, has stated her opposition to hefty taxes on the wealthy this year, fearing a mass exodus of high earners from the state.
While some Democratic leaders in the state legislature back Mamdani’s push for a tax hike, it’s uncertain how these negotiations will unfold.
Fixed asset tax increase
Mamdani also laid out a $127 billion budget proposal to Hochul, effectively issuing an ultimatum: either stop taxing the wealthy or brace for a 9.5% increase in property taxes.
This surprising move caught even some of his supporters off guard since it diverged from his campaign commitment to tax only the rich.
The proposal could bring in around $3.7 billion annually from more than three million homes owned by individuals typically earning about $122,000 annually, according to officials.
The mayor framed the tax hikes as an essential choice: should the burden of budget balancing fall on a small number of wealthy individuals or on working and middle-class residents?
Mamdani’s early days in office
A glimpse into his first 100 days
January 1: Diary entry: I’m the Mayor! AOC owes me $20, but she thinks I should just enjoy the “warmth of collectivism.” After the block party, I stopped by my new office to redefine anti-Semitism and okay boycotting Israel. Mission accomplished.
January 6: My daughter got in trouble for saying something like wanting to “grab private property,” claiming home ownership is a “weapon of white supremacy.” Classic! It was practically my campaign slogan! We also moved into Gracie Mansion.
January 7: Still dealing with the clean-up. How many sticks does one mayor need? Also, this place really could use a bidet. Still can’t shake the smell of Bill DeBlasio’s marijuana.
January 14: King Don is still upset over letting undocumented immigrants slide. Telling him he looked good on camera calmed him down a bit.
January 28: People are blaming me for the homeless staying outdoors in the cold. I guess I’m pointing fingers at the patriarchy.
January 30: Tried on this “City of New York” jacket. Felt good! There was something about it. Definitely should go on the promotional poster!
February 11: Taxes, taxes, taxes.
February 12: Brainstorming new taxes. What about taxing billionaires who walk on 14th Street? A sidewalk tax? Jot this down for the next meeting.
February 17: Ah, “Karen” Hochul. Told her I needed more taxes, and she just said, “hmm.” Seriously, it’s my brand! My X handle is @taxman. Someone in my socialist group might run for governor.
February 18: This mayor gig is hard.
February 26: Told Jessica it’s not a crime for a kid to throw a snowball at an officer, even if that kid’s 27 with a record.
March 1: Created a TikTok today.
March 2: Also made a TikTok.
March 8: I don’t get why people can’t see the distinction. When Rama is with me at events, she’s a public figure. When she tweets about Hamas, she’s a private citizen. Simple, right?
March 16: Apparently, I can’t “ban the car.” Thought that was my job! Someone mentioned we might lower the speed limit instead.
April 2: Reminder: Buy more Crest White Strips!
April 8: It turns out providing free buses and puppies is costly. My friends attending the Havana convention will be furious.
April 9: My approval rating hit 48%! Everyone in Park Slope claims to love me!
“I don’t want to raise property taxes,” Mamdani stated. “In this tough situation, the real question is who should shoulder these taxes? The wealthiest New Yorkers and the most profitable corporations seem like a fair choice to me.”
People reacted quickly, and he hasn’t really brought up those rate hikes lately.
“The way he handled the unpopular property tax issue was a major communication blunder. Was he in favor of it or against it?” questioned Evan Ross Smith, a pollster.
“He didn’t sell the idea well to the City Council or the public. It was striking how fast it unraveled, particularly given how self-inflicted it seemed. He failed to clearly outline his goals.”
Inheritance Tax
This proposed property tax hike isn’t the only potential burden on the middle class. A tax proposal from Mamdani’s team suggests drastically lowering the inheritance tax exemption from $7 million to just $750,000.
This plan also seeks to raise the highest tax rate from 16% to 50%.
Officials expect this change could yield an extra $4 billion annually.
Critics are pointing out that many middle-class homes in New York City typically sell for significantly more than six-figure sums.
