Kathy Hochul Already Talking About Raising Taxes to Fund Zohran Mamdani's Plans
New York City Mayor-elect Zohran Mamdani rode a wave of left-wing enthusiasm into office by promising a sweeping slate of progressive giveaways — from fare-free transit to universal childcare, cheaper groceries, rent freezes, and upgraded living conditions across the city. To deep-blue voters, it all sounded like a utopian wish list finally within reach.
But while Mamdani campaigns on lofty slogans, a more sobering question is looming over Albany: Who is going to pay for all of this?
It appears Democratic Gov. Kathy Hochul has been asking herself the same question — and according to a pointed Politico report, the answer emerging behind closed doors is one many New Yorkers will find deeply unsettling.
Hochul and her advisers have been exploring how to fund Mamdani’s massive promises, with one high-profile option on the table: raising taxes on higher-income New Yorkers and businesses. The governor has publicly resisted tax hikes, but the political left is pressuring her to capitulate and pump more money into the city’s expanding social agenda.
Still, Hochul’s administration insists publicly that tax increases are not their preferred path.
“Taxes are a last resort at this moment in time when we’re in a good spot financially and on good fiscal footing,” Budget Director Blake Washington told reporters, according to Politico.
He added, “That’s the last thing on my mind.”
But the math tells a different story. Mamdani’s promised programs aren’t pocket-change experiments — they are budget-busting commitments. As Politico notes, universal free childcare alone could cost up to $14 billion.
One of Mamdani’s solutions is to jack up corporate taxes from 7.25 percent to 11.25 percent, a move that would directly contradict Hochul’s previous vows to avoid tax increases.
The timing is politically perilous. As the New York Post points out, Hochul is gearing up for a reelection bid in 2026, and any embrace of higher taxes could become a central liability. Even the mere suggestion of tax hikes has already energized potential challengers.
Bruce Blakeman — a likely 2026 Republican contender — slammed Hochul’s handling of the situation.
“Kathy Hochul’s failed policies have already pushed businesses and residents out of New York for years,” Blakeman said. “With Zohran Mamdani now steering the direction of this one-party controlled state, it’s clear the Governor is prepared to raise taxes even higher — forcing New York businesses to pay far more than competitors in states like Florida, New Jersey, and Texas.”
The New York Post further noted that New Jersey already holds the highest corporate tax rate in the country at 11.25 percent — and Mamdani’s plan would effectively push New York’s rates even higher when factoring in the additional taxes the state already imposes.
For Hochul, the political crossroads is unavoidable: either fund Mamdani’s freebie-laden agenda with punishing tax hikes or confront the progressive wing of her party and risk backlash from the left.
Either way, New Yorkers may soon face a hefty bill for the ambitious promises that helped sweep Mamdani into office.