New York City Mayor Zohran Mamdani is going after the rich—and he’s not being subtle about it.
In testimony before the New York State Senate on Wednesday, the newly elected Democratic mayor called for a two percent tax increase on New Yorkers making over a million dollars a year, along with a hike in the state’s corporate tax rate from 7.25% to 11.5% to match New Jersey.
“I believe the wealthiest individuals and most profitable corporations should contribute a little more so that everyone can live lives of dignity,” Mamdani said.
WHAT’S GOING ON: New York City is staring down a $7 billion budget gap. That’s actually the good news—it was $12 billion before Mamdani’s team got to work, cutting it down through what he called “an aggressive posture on savings without compromising city services.”
But despite the progress, Mamdani warned that the city is still “placed on a ledge.” His solution? Make millionaires and mega-profitable corporations pay up.
According to Mamdani, that two percent tax hike on the wealthiest New Yorkers would resolve nearly half of the city’s remaining budget deficit. The preliminary budget drops Tuesday.
BUT BUT BUT: Here’s where it gets complicated. Mamdani can’t just snap his fingers and raise taxes on the rich. Any tax increases need approval from Governor Kathy Hochul—and she’s already made her position clear.
“We’re able to make transformative investments in our future. Without raising taxes. Without saddling the next generation with mounds of debt,” Hochul said when she presented her own budget last month.
The governor has repeatedly opposed any tax hikes in the state. But she’s been swayed by Mamdani before. Her office didn’t respond to requests for comment on Mamdani’s proposal.
This is why Mamdani was elected. Taxing the rich is the overwhelmingly popular position.
And wherever Hochul goes, she’s met with chants to tax the rich.
At the Bernie, AOC, Zohran New”New York is Not for Sale” rally.
— People for Bernie (@People4Bernie) October 26, 2025
The whole crowd is chanting “Tax the Rich! And Gov. Hochul acknowledges them. “I hear you”
Elections matter pic.twitter.com/IVAL89ivD1
Mamdani has already endorsed Hochul’s re-election campaign, but if she doesn’t fall in line, expect her to be met with strong opposition from those who put them both in power.
WHY IT MATTERS: This is shaping up to be a classic progressive-vs-establishment Democratic showdown. Mamdani, a former state assemblymember and democratic socialist, ran on exactly this platform—taxing the rich to fund public services. Now he’s actually trying to do it.
The question is whether Hochul will budge. New York City is home to some of the most obscene wealth concentration in the country, sitting right next to crushing poverty and crumbling infrastructure. Mamdani’s argument is simple: the money exists, it’s just in the wrong hands.
Whether Albany agrees is another story entirely.