Mayor Zoran Mamdani’s bold proposal to “tax the rich” has caught the attention of both progressives and conservatives, putting Governor Kathy Hochul in a challenging position, especially in an election year, officials expressed to the Post.
When asked about Mamdani’s potentially reckless call for a 2% billionaire tax—threatening a 9.5% property tax rise if his demand isn’t met—local Democrats reacted strongly. “This is an election year!” was a recurrent sentiment on Tuesday.
“Middle-class homeowners shouldn’t be used as bargaining chips,” stated Queens Borough President Donovan Richards in an interview.
Richards expressed concern that Mamdani’s approach could jeopardize the Democratic Party’s chances as Hochul gears up for re-election in the November elections.
“I don’t want to provide Republicans with easy talking points while we’re trying to regain the House,” he added.
State Representative Michael Benedetto, a Democrat from the Bronx, also weighed in, clearly expressing his hesitance about raising taxes in an election year: “I’m not keen on it.”
This situation puts Hochul in a tight spot heading into her re-election campaign against Republican Bruce Blakeman, who has criticized her, stating he’d provide the city with an extra $1.5 billion in state funds.
Mamdani recently released a substantial $127 billion interim budget, using a projected $5.4 billion budget shortfall as leverage to call for tax increases on the wealthy—a move supported by the Democratic Socialist Party of America.
Hochul has pushed back, stating she opposes income tax hikes and isn’t in favor of raising property taxes, which, while under the mayor’s purview, still require City Council approval.
“I don’t support raising property taxes on New Yorkers,” she reiterated after an unrelated press conference, claiming she wants to avoid pushing more residents out of an already high-tax state. “I’m advocating for tax cuts.”
Despite her stated opposition, recent symbolic budgets from the state Senate and Assembly have included tax increases, with prominent leaders showing support for such measures.
However, House Speaker Carl Heastie has not agreed to allow Mamdani to raise taxes this year, despite having supported similar proposals in the past.
“Ultimately, we’ll be okay. We’re not leaving the city in a dire situation,” he noted after the Democratic National Convention.
Mamdani has labeled his tax proposal as a “last resort” to address the city’s budget issues, attempting to frame them as a pressing crisis.
Some local Democrats are frustrated, accusing Mamdani of using homeowners and businesses—around 3 million residential properties and 100,000 commercial properties—as political pawns.
Yet, some observers doubt whether his threats will gain traction, predicting that the City Council is unlikely to approve such a property tax increase even if put to a vote. “He misjudged the situation,” a former Democratic lawmaker remarked. “If he thinks they’ll agree to a 9.5% property tax hike, he may want to reconsider.”
The last significant property tax increase happened under Mayor Mike Bloomberg, who implemented an 18% hike after the September 11 attacks.
It’s also worth noting that Mamdani’s proposed budget, which aims to raise city spending by $11 billion starting in 2026, lacks substantial cuts, leading many Democrats to doubt his claims of a fiscal emergency.
“I don’t believe we’re in that dire of a situation,” said former City Councilman David Weprin, reflecting on the financial climate back in 2002. “Tax increases should be a last resort; there are various ways to cut spending.”
Weprin added that a large-scale property tax increase could negatively affect the entire city, dismissing the idea of taxing the wealthy as a mere political move that wouldn’t translate into effective policy.
“It sounds good, and the polling might support it, but that doesn’t necessarily correlate to sound tax policy,” he commented.
Mamdani could consider reducing expenses in the Department of Education, which consumes about 40% of the city’s budget. Despite a 12% drop in enrollment since the pandemic, funding for the department has been increasing.
“Adjusting school funding based on actual enrollment could save $400 million,” suggested Andrew Lane, the city’s budget director. “We should prioritize improving education rather than merely increasing spending.”
Funding could potentially be cut if Albany repeals a costly 2022 mandate for smaller class sizes, and Lane proposed that Mamdani seek changes in that area rather than escalating tax disputes.
Interestingly, Mamdani may have vexed Hochul with his recent ultimatum; the day before, she had announced $1.5 billion in aid to alleviate the city’s budget shortfall—which insiders say has annoyed her office.
“They worked around the clock to secure the funds for him. This was seen as quite a dismissal of their efforts,” a source told the Post.
