Zohran Mamdani says NYC being ‘the most expensive’ justifies tax hike on millionaires

ALBANY, NEW YORK: New York City Mayor Zohran Mamdani is standing firm in his push to raise taxes on wealthy residents, arguing that the city’s soaring cost of living leaves him little choice.

Speaking to state lawmakers, Mamdani said the “why” behind his proposed tax hike is simple: New York is already the most expensive city in the country.

The mayor’s comments came as he sought approval from Albany to increase income taxes by 2% on residents earning more than $1 million a year. 

Zohran Mamdani defends millionaire tax hike proposal

During testimony before lawmakers, Mamdani was pressed to explain why he believes a tax increase is necessary. Assembly Member Amanda Septimo (D-Bronx) asked him directly about the reasoning behind the proposal.

“I think the why comes from the fact that we are the most expensive city in the United States,” Mamdani said.

He acknowledged that the city is facing serious financial challenges. “There simply isn’t enough money that we wish there could be,” he added. Mamdani also warned that failing to act could worsen an ongoing trend of people leaving the city.

“If we take that approach year after year, what happens is we do see the exodus that’s happening right now for working middle-class people leave the city, leave the state, trying to find a place where their ends can be a little bit easier to meet,” he said.

The mayor has been advocating for tax increases since launching his campaign. His broader proposal includes not just the 2% personal income tax hike for millionaires, but also a 4% increase in corporate taxes.

NYC budget gap narrows after $7.2B revenue update

Since taking office in January, Mamdani has repeatedly pointed to a multibillion-dollar budget gap as evidence that the city needs new revenue. He warned that the current fiscal year and the next were facing serious shortfalls.

However, that alarming number changed this week. On Wednesday, Budget Director Sherif Soliman revealed that the previously reported $12 billion shortfall did not include $7.2 billion in tax revenue collected at the end of the year. The omission significantly reduced the projected gap.

The revelation raised fresh questions about the urgency of Mamdani’s tax push. If the budget gap is smaller than first claimed, the need for higher taxes may not be as immediate as suggested, critics argued.

Kathy Hochul opposes Zohran Mamdani tax hike

Mamdani’s proposal cannot move forward without state approval, and Governor Kathy Hochul has made it clear that she is not convinced. Hochul has repeatedly resisted calls to raise income taxes, pointing out that New York is already among the most heavily taxed states in the country.

While she has not signed off on Mamdani’s proposal, her stance signals a potential clash between City Hall and Albany.