You might think you’ve seen it all in politics, but Governor Hochul really took it to a new level on Monday. After a Staten Island judge stopped the rollout of a controversial pied-à-terre tax, she quickly distanced herself from the issue despite having originally proposed it and pushed it through the Legislature.
In a post-ruling appearance, she took on the role of an innocent bystander, as if it was all scripted. Her comments seemed disconnected from reality, talking about how people were dissatisfied with the tax but, almost immediately, shifting to a mode of deflection.
Hochul stated, “We are not responsible for the developments,” which felt a bit disingenuous. She followed up by saying, “This is something we had discussed with the city in advance.”
It’s hard to believe she’s trying to wash her hands of this situation when she had previously touted the tax as fair and necessary.
Trump wasn’t buying her sudden claim of innocence. He criticized her on Truth Social, calling her handling of the tax “pure amateur hour” and suggested it would harm the city, even promising a federal investigation before the tax goes into effect.
He labeled the tax a risky “experiment” that could wreak havoc on cities and states, adding, “As president of the United States, it’s hard for me to sit back and watch that happen, especially in a place I once loved.”
Campaign pandering
The peculiar circumstances surrounding this moment can’t be viewed independently of how Hochul’s re-election campaign sought to embrace Mamdani’s more radical supporters.
Raising taxes, especially on the wealthy, became a core part of the dominant socialist thinking, and Hochul seemed eager to appease those voices while maintaining a moderate image.
She turned down Mamdani’s suggestion to boost income taxes on affluent companies, instead proposing a pied-à-terre tax expected to generate around $500 million annually.
Her announcement included props from Mamdani, suggesting a class struggle narrative. He exulted, “Thanks to Governor Hochul’s support, we are one step closer to balancing the budget by imposing a pied-à-terre tax on the ultra-wealthy and the global elite, a first in the state.”
Mamdani also stated that he and Hochul are “fighting every day” to ensure the wealthy contribute, framing it as a commitment to New Yorkers who are facing rising costs in the city.
On the same day, he made waves at a Manhattan property by ridiculing billionaire Ken Griffin and showcased a peculiar video of himself boasting about “taxing the wealthy.”
Meanwhile, Hochul stayed silent on the matter, only referring to the tax as a “short-term transitional adjustment to how various real estate types are evaluated in New York City.”
There was a lot she wasn’t addressing. Recently, her aides disclosed that the state is reviewing real estate listings in New York City for potential fraud claims related to tax evasion.
Focus on “non-residents”
According to Gothamist, the state is on the lookout for homeowners who “falsely claim to be non-residents” to escape state taxes.
This means the state of New York could use the pied-à-terre tax as a means of trapping homeowners into either paying the tax or claiming New York residency.
If they claim residency, they wouldn’t enjoy the lower tax benefits from other states where they might own properties, like Florida.
Jen Goodman from Gothamist hinted that the new law could lead to severe penalties for homeowners living in New York City for more than half the year yet still hoping to file taxes elsewhere. Red flags might include an out-of-state driver’s license or even just having a car registered in another state.
At least, as far as I know, Hochul hasn’t publicly acknowledged any intention to use the city’s property lists for state tax collection.
Her main aim seems to be winning over Mamdani’s supporters without alienating middle-class households or pushing them towards her Republican opponent, Bruce Blakeman.
Blakeman has committed to abolishing the pied-à-terre tax and cutting state spending, although he’s facing an uphill battle to truly challenge her.
Since 2002, Republicans haven’t clinched a statewide election, and recent polls indicate Blakeman is lagging behind. Registered Democrats far surpass Republicans in numbers across the state, and independents also exceed Republican registration.
Blakeman, who leads Nassau County, will need to garner over 30% of the vote in all five boroughs to have a realistic chance at victory. That’s the highest requirement we’ve seen for Republican candidates, especially compared to others like Lee Zeldin and Trump, both of whom faced defeats in the state.
