New York's Fiscal Fiasco: How Mayor Mamdani's Ignorance Could Devastate the City
A $12 billion budget shortfall has been inherited by newly elected Mayor Zohran Mamdani, a figure that's already making him think of raising taxes on city residents earning over $1 million. However, this isn't the first time he's pushed for such measures without fully understanding their impact.
Mamdani recently proposed increasing taxes on high-income earners to ensure they pay a "fair share" of the city's enormous budget. During an anecdote about his proposal, Mamdani claimed that a $1 million earner might be surprised by a tax hike as low as $20,000. But this assumption reflects Mamdani's own lack of understanding of what he's proposing.
The issue isn't just the magnitude of the proposed increase; it's also the broader economic and fiscal context. New York state has been raising taxes on million-dollar incomes for years, with rates increasing from 8.82% to 9.65% between 2021 and 2017. The city's tax rate is already steep, particularly compared to other major US cities.
The problem worsens when combining federal, state, and local tax rates. For New York City residents, the top combined rate has exceeded 50%, a level not seen since the early 1980s. Capital gains taxes are equally concerning, with the combined federal-state-city rate approaching 39% – one of the highest in the world.
These rates already disproportionately affect New York's share of US taxpayers earning $1 million or more, which has declined significantly over the past decade. As a result, many high-income earners have moved to states like Florida.
Mamdani's plan would lead to tax hikes running into six figures for mega-earners. However, these individuals generate a large portion of city income taxes, making it essential that any further increases are carefully considered.
Governor Kathy Hochul has taken steps to mitigate potential losses among high-income earners, expressing concerns about losing more people to other states like Florida. Yet, some progressives portray her as a "moderate" party-pooper for resisting further tax hikes. However, she needs to prioritize maintaining the city's tax base if she wants to avoid exacerbating the state's fiscal problems.
Mamdani will need to provide specifics on how he'll address the city's budget shortfall in his upcoming February budget. If he abdicates responsibility and turns to Albany for a bailout, it would be a repetitive story in New York politics that rarely ends well.
A $12 billion budget shortfall has been inherited by newly elected Mayor Zohran Mamdani, a figure that's already making him think of raising taxes on city residents earning over $1 million. However, this isn't the first time he's pushed for such measures without fully understanding their impact.
Mamdani recently proposed increasing taxes on high-income earners to ensure they pay a "fair share" of the city's enormous budget. During an anecdote about his proposal, Mamdani claimed that a $1 million earner might be surprised by a tax hike as low as $20,000. But this assumption reflects Mamdani's own lack of understanding of what he's proposing.
The issue isn't just the magnitude of the proposed increase; it's also the broader economic and fiscal context. New York state has been raising taxes on million-dollar incomes for years, with rates increasing from 8.82% to 9.65% between 2021 and 2017. The city's tax rate is already steep, particularly compared to other major US cities.
The problem worsens when combining federal, state, and local tax rates. For New York City residents, the top combined rate has exceeded 50%, a level not seen since the early 1980s. Capital gains taxes are equally concerning, with the combined federal-state-city rate approaching 39% – one of the highest in the world.
These rates already disproportionately affect New York's share of US taxpayers earning $1 million or more, which has declined significantly over the past decade. As a result, many high-income earners have moved to states like Florida.
Mamdani's plan would lead to tax hikes running into six figures for mega-earners. However, these individuals generate a large portion of city income taxes, making it essential that any further increases are carefully considered.
Governor Kathy Hochul has taken steps to mitigate potential losses among high-income earners, expressing concerns about losing more people to other states like Florida. Yet, some progressives portray her as a "moderate" party-pooper for resisting further tax hikes. However, she needs to prioritize maintaining the city's tax base if she wants to avoid exacerbating the state's fiscal problems.
Mamdani will need to provide specifics on how he'll address the city's budget shortfall in his upcoming February budget. If he abdicates responsibility and turns to Albany for a bailout, it would be a repetitive story in New York politics that rarely ends well.
The thing is, I don't think Mamdani fully understands how high-income earners think or feel about taxes 
. He's always talking like he's one of them, but really, his plan is gonna push a lot of people who already have limited budgets to the edge 
. And what's worse, it's not just New York - other states are doing the same thing and people are just leaving 
. It's not just about the money; it's about people wanting to live in places that don't suck their last penny dry 
.
Mamdani's plan is just gonna push high-income earners outta NYC even more 
And honestly its not surprising he dont know the impact of his ideas, most politicians do 
. With rates already over 50% combined, a further increase would have devastating effects on the local economy 
.
. We can't just tax our way out of our budget problems; we need a long-term plan that works for everyone 
. Mayor Mamdani needs to get a grip on the numbers and not just wing it like he did with those tax hikes. I'm all for fairness, but this guy is gonna end up hurting his own city by scaring off high-income earners who already know they're getting taken to the cleaners 
. People are already fleeing to Florida for a better deal, and Mamdani's plan would make it even worse. It's like he thinks people are made of money or something 
. Governor Hochul is trying to do the right thing by being cautious, but she's getting vilified for it? Come on... priorities, folks! If Mamdani can't even handle a budget shortfall, how's he gonna fix the city's problems? 
but we all know that's not how it works 
The problem is, NYC already has some of the highest taxes in the country 
It's like he's not even doing his due diligence on this one 
Not me, that's for sure! 
not just the 1% who have the means to move outta dodge. 
think about all the good ppl who've been living below $1 million but are barely scraping by 
And don't even get me started on the high-income earners leaving for states like Florida. Like, fair enough, if the city can't offer 'em a decent tax deal, they're gonna leave.
. And let's not forget about the fact that many high-income earners are already considering leaving the state due to the already high tax rates 
. I'm not saying Mamdani doesn't know what he's doing, but it seems like he needs to think outside the box (or in this case, the budget) 
.
. If Mamdani can find a way to address the budget shortfall without sacrificing the city's economic growth, then I think he'll be just fine 
. But if he keeps going down this path, it could be disastrous for the city 
.
. governor hochul is on the right track by trying to mitigate potential losses, but we need more transparency from mamdani on how he's gonna fix this fiscal fiasco 
and I saw like 5 ppl who r earning like $1m+ and they were actually kinda mad about the tax hike talk Mamdani is proposing 
. But what about those who can't afford it at all? That's just unfair 
.
. Like, Governor Hochul is trying to mitigate losses, but some folks are piling on her for being a party pooper