NYS Dems open up to Zohran Mamdani’s tax-hike plan as primary threats loom: ‘Sends a message’

Democratic state lawmakers are already expressing support for Mayor-elect Zohran Mamdani’s plan to raise taxes on millionaires and corporations, in order to fulfill his ambitious campaign promises. Mamdani’s proposal aims to generate $9 billion in revenue through tax hikes, but the final decision lies with Governor Kathy Hochul and the state government.

Governor Hochul, who is facing re-election in 2026, has voiced her opposition to the tax increase plan. However, influential state Democrats, such as Senator James Skoufis and Senator Liz Krueger, are open to considering the tax hikes. Skoufis stated that he would be willing to support modest increases on millionaires if some of the revenue is used for tax relief for working-class families. Krueger, who chairs the finance committee and endorsed Mamdani, emphasized the importance of exploring all options for the benefit of New Yorkers.

Despite Hochul’s stance against the tax hikes, she is facing pressure from the progressive wing of the party and Mamdani supporters to shift towards a more left-leaning position on the issue. Mamdani’s supporters have been vocal in their calls to “Tax the Rich,” urging Hochul to align with their agenda. Assemblywoman Jenifer Rajkumar, who represents a diverse district in Queens where Mamdani secured 53% of the vote, expressed her commitment to working with the mayor-elect to find alternative ways to fund priorities without negatively impacting the state’s competitiveness.

In a bold move, a former aide to Rep. Alexandria Ocasio-Cortez suggested that Mamdani’s team should consider threatening Democrats with primary challenges if they do not support his affordability agenda. The aide proposed that AOC should run for governor if Governor Hochul fails to align with their goals, emphasizing the power of the ballot box in sending a message to politicians.

Overall, the debate over tax hikes in New York State reflects a larger conversation about economic policies and priorities. As the new administration prepares to take office, the decision on tax increases will have significant implications for the state’s budget and social programs. It remains to be seen how Governor Hochul and state lawmakers will navigate these complex issues in the coming years.