Thursday, October 1, 2026
Mayor Zohran Mamdani might be New York City’s greatest magician. With a wave of his hand and repeated chants of “Tax the rich,” he has persuaded many that he can make the city’s budget problems disappear. But don’t let the sleight of hand fool you: There’s no trick up Mamdani’s sleeve when it comes to taxpayer dollars.
Over the past several months, he has frequently changed the way he describes the city’s fiscal situation. In January, he warned New Yorkers that the city was facing a $12 billion budget crisis. When he came to Albany in February seeking additional state assistance, that number had inexplicably dropped to $7 billion. In May he celebrated the budget gap’s closure, but what it amounted to was little more than kicking the city’s budget gap further down the road. Eventually those costs will catch up, and every New Yorker will bear the consequences.
Mamdani’s version of balancing the city budget relied heavily on temporary measures that didn’t solve the underlying fiscal problems. State Comptroller Thomas DiNapoli warned that while the city’s budget is currently balanced, one-time actions threaten long-term fiscal stability.
Those actions include delaying billions of dollars in obligations, including deferring $2.3 billion in pension plan payments owed to retired teachers, law enforcement, first responders and other public employees, and postponing the city’s mandate for smaller class sizes — essentially playing a budget balancing act on the backs of those he claims to fight for. Rather than closing the deficit through economic growth, attracting new businesses and residents or exercising spending restraint, the mayor’s budget still leaves the city facing a projected $8.8 billion gap in 2028.
Moving numbers around to create the appearance of stability only works for so long, especially when the numbers only go in one direction — up. The recently enacted pied-à-terre tax is one example of a troubling trend: When spending grows, Albany simply looks for another tax to pay for it.
The tax places an annual surcharge on certain luxury second homes in New York City, with rates depending on property value. Thousands of New Yorkers have already received notices about the new tax. Even after privately informing these homeowners, some of whom believe they have been incorrectly identified, Mamdani’s administration published a searchable database of properties that could be subject to the tax, including full names and addresses.
This is only the beginning. Proposals being pushed by the Democratic Socialists of America include new income tax brackets starting at $1 million, additional surcharges on high earners in the city and increased taxes on profitable businesses. Together, they send a clear message to high earners, entrepreneurs and job creators: New York is no longer open for business. And it’s a lousy strategy for a state already struggling with affordability, population loss and, as a result, a shrinking tax base.
The push for more taxes assumes New York’s fiscal challenges are caused by a lack of revenue, which isn’t the case. They are caused by incessant, unchecked spending. Last month, DiNapoli confirmed what Republicans have warned for years: State spending is continuing to outpace revenue growth. The state’s 2027 budget is projected at approximately $277 billion, an $18 billion year-to-year increase, while projected out-year budget gaps now total more than $31 billion. Continuing to manage spending this way will only make New York less affordable and further erode its long-term fiscal stability.
The irony of it all is that Mamdani’s proposed tax increases are being used to justify new spending commitments, while failing to address the problems created by years of excessive spending. His approach doesn’t solve the problem; it creates new problems. New York’s tax base is highly concentrated among high-income earners, with the top 1 percent of taxpayers accounting for nearly 53 percent of personal income tax collections. Given that New York’s share of the nation’s millionaires has declined from 12.7 percent in 2010 to 8.7 percent in 2022, doubling down on an excessive tax strategy is undoubtedly reckless.
There is no magic wand for fiscal responsibility, no disappearing act for billions in spending. And there is no bottomless hat of taxpayer dollars. New Yorkers deserve a government grounded in reality, not illusion. And getting there starts with fiscal discipline, responsible budgeting and a government that learns to live within its means.
Ed Ra represents the 19th Assembly District and is the Assembly’s minority leader.
