Mamdani renews tax-hike push as Hochul opposes plan ahead of NYC mayoral race

New York City mayoral candidate Zohran Mamdani renewed his push for higher taxes on corporations and the wealthiest residents, a stance that sets him at odds with Gov. Kathy Hochul, who has repeatedly said she does not support new taxes. Mamdani spoke at a Sept. 24 rally in the Bronx with health care workers from 1199SEIU, arguing that the additional revenue would fund a broad package of universal services and anti-poverty programs he has promised voters. The Queens Democrat has built his bid around a tax-and-spend platform, insisting that expanded public services can be financed without harming everyday New Yorkers if the city redirects existing funds and improves efficiency. He also argued that reducing NYPD overtime costs could help offset part of the price tag, noting that overtime has run around $1 billion in recent years.

According to Mamdani, the plan would generate about $9 billion in new revenue, with an additional $1 billion expected from city-level savings and reforms. The package would raise the corporate tax to align with neighboring states and lift the top rate on the state’s highest earners. Supporters say the money would fund free buses, childcare, and city-run groceries, while enabling other investments promoted by the campaign. The plan would depend on how the city implements reforms and whether overtime spending and other costs can be trimmed, a point Mamdani has stressed as the fiscal backbone of his argument for tax reform.

Hochul has opposed tax increases at the state level and has said she will not raise taxes to fund city initiatives. The governor endorsed Mamdani for mayor earlier this month, a move that surprised some observers and has left questions about how the two would cooperate in Albany and City Hall if Mamdani wins. Since the endorsement, Hochul has largely avoided detailing how the policy alignment would work in practice, particularly given her broader obligation to manage a state with competing political pressures from suburban districts to upstate constituencies.

In the citywide race, Mamdani leads in polls in a crowded field that includes Republican Curtis Sliwa and several Democrats running as independents, as well as incumbent Mayor Eric Adams and former Gov. Andrew Cuomo who have been mentioned in various ballot configurations. The tax proposal has intensified the broader debate about how to fund social services and public safety in New York City, highlighting the contrast between Mamdani's expansive program and Hochul's cautious stance as she seeks to shore up support among suburban voters ahead of the 2026 re-election bid.

Analysts say the clash over taxes could become a defining theme of the campaign, shaping discussions about how a city should pay for ambitious social programs without broad tax hikes across the board. The dynamic also underscores the tension between a candidate pursuing a bold fiscal agenda at the local level and a governor who has urged restraint on state-level taxation while trying to maximize downstate support for a statewide bid. As November approaches, observers will watch how Mamdani’s revenue framework interacts with Hochul’s political calculus, and whether the intergovernmental alignment or discord will influence voter perceptions of governance and tax policy in New York.