New York Governor Kathy Hochul has firmly rejected proposals from New York City Mayor Zohran Mamdani for tax increases targeting wealthy residents. During a press conference on March 6, 2024, at the headquarters of the Hotel and Gaming Trades Council, Hochul stated her opposition to the idea, emphasizing that the state has sufficient funds without raising taxes.
Hochul’s comments come amid a growing political landscape as she prepares for the upcoming State Democratic Party convention. The governor highlighted that New York has experienced a substantial increase in revenues, specifically noting that the state received $17 billion in unexpected funds from Wall Street bonuses. She expressed confidence that these funds would allow the state to meet its operational needs and address any budget gaps while supporting various programs, including a limited child care pilot initiative.
Mamdani, who has been vocal about his desire for New York City to receive its “fair share” of state revenues, has been advocating for a wealth tax since his campaign began. Hochul remarked that this sentiment is not new, suggesting that Mamdani’s calls for tax reform may be premature. “This is early for their team. They’re just getting under the hood,” she said, implying that the new administration requires more time to assess the state’s financial landscape.
Despite Mamdani’s lobby for increased city funding, Hochul reiterated that her current budget, which totals $260 billion, does not include new personal income or corporate tax hikes. Some analysts suggest that this decision may be influenced by concerns over Hochul’s reelection prospects. In response to Mamdani’s claims, she noted her administration’s significant investment of $25 billion into New York City over the past four years, a 33.5% increase aimed at addressing the city’s pressing needs.
As the political climate intensifies, Hochul is also expected to announce her choice for lieutenant governor before the State Democratic Party Convention next week. Reports indicate that she has already faced rejections from prominent figures, including Queens Borough President Donovan Richards and State Senator Jamaal Bailey.
Reflecting on her own experience, Hochul shared that she was approached to be former Governor Andrew Cuomo‘s running mate just days before the convention in 2014. “It’s early. I think I was asked a day and a half before the convention,” she recalled, underscoring the unpredictable nature of political appointments.
As Hochul navigates these challenges, the dynamics between her administration and the new mayor’s office will likely continue to evolve, shaping the future of New York’s fiscal policies and political alliances.
