Zohran Mamdani Pushes Tax Hikes on Wealthy New Yorkers, Breaking With Hochul Budget Pledge

New York City Mayor Zohran Mamdani signaled Wednesday that he intends to pursue higher taxes on wealthy residents and corporations, openly diverging from New York Gov. Kathy Hochul’s newly unveiled state budget, which includes a pledge not to raise income taxes, as reported by the New York Post.

Speaking to reporters at an unrelated press conference at the Whitney Museum, Mamdani said his administration plans to push Albany to approve tax increases for New York City despite Hochul’s stated opposition.

“Our administration is preparing to make the case that it is the time for New York’s most profitable corporations and wealthiest residents to pay their fair share,” Mamdani said.

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The remarks came one day after Hochul released her proposed $260 billion state budget, as the Democratic governor faces pressure from both the progressive wing of her party and more moderate voters in an election year.

Hochul’s proposal included a universal pre-kindergarten plan, an issue that has also been championed by Mamdani and his supporters.

Mamdani argued that New York City contributes far more to the state’s finances than it receives in return, saying the city generates 54.5% of the state’s tax revenue while receiving only 40.5% back.

Any change to city tax rates would require approval from the state legislature.

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“What we are looking to do is to tackle long-standing fiscal issues that both have to do with the need for more revenue from the highest earners, but also the relationship between City Hall and Albany,” Mamdani said.

The mayor, who took office three weeks ago, is already confronting a projected $12.6 billion budget deficit over the next two fiscal years.

He placed blame for the city’s financial situation on his predecessor, former Mayor Eric Adams, while praising Hochul’s handling of state finances.

“I think that it’s actually the governor’s fiscal stewardship, I think it’s also the strength of our city’s tax base, that the state is on firm financial footing,” Mamdani said.

“The issue, however, is that the city is not, and that is a result, a direct result of Eric Adams’s gross fiscal mismanagement.”

Mamdani’s comments add to the political challenges facing Hochul as she attempts to navigate divisions within her own party.

The governor is facing a Democratic primary challenge from Lt. Gov. Antonio Delgado, who is running from her left.

Republicans have also seized on the dispute. Bruce Blakeman, the Nassau County executive, has criticized Hochul in the early stages of the campaign, portraying her as increasingly aligned with the party’s progressive base.

Hochul endorsed Mamdani during his 2025 mayoral campaign, a move that surprised some observers.

At a subsequent rally of Mamdani supporters, Hochul faced chants of “Tax the Rich,” highlighting the pressure she faces from the party’s left flank.

Despite Mamdani’s push for higher taxes, City Comptroller Mark Levine reported that city tax revenues rose 7% in Fiscal Year 2026. Levine attributed the city’s current financial strain to decisions made by the previous administration.

“This wasn’t caused by a bad economy — it’s the result of budgeting decisions from the previous administration that we must now deal with,” Levine said.

Hochul has not entirely ruled out tax increases after the November elections, but her budget team has emphasized restraint. State Budget Director Blake Washington said Tuesday that the governor views tax hikes as a last option.

“She thinks it’s a last resort to raise taxes on anybody at any time,” Washington said.

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