A headline going around social media says New York Governor Kathy Hochul is already planning to raise taxes to pay for Mayor-elect Zohran Mamdani’s expensive promises. It’s the kind of claim that grabs attention fast — especially if you’re a business owner or just someone trying to make a living in New York. So, is it true? Let’s dive into the facts.
First, who is Zohran Mamdani? He’s a politician who just won a special election to become the next mayor of New York City. He’s known for having big ideas — and we do mean big. He’s promised fare-free public transportation, free childcare for all families, rent freezes, and even cheaper groceries. These are the kinds of things that sound great, especially in a city as expensive as New York. But they also cost a lot of money.
So now the big question: Where will that money come from?
That’s where Governor Kathy Hochul comes in. According to a report from Politico, she and her team have been talking about how they might pay for some of Mamdani’s promises. One idea being tossed around? Raising taxes — particularly on higher-income people and businesses. That’s what’s setting off alarm bells.
Governor Hochul has said she doesn’t want to raise taxes right now. Her budget director, Blake Washington, even told reporters that taxes are “a last resort” and that the state is currently in “a good spot financially.” But here’s the problem: Mamdani’s ideas are not cheap. Just one of them — universal childcare — could cost as much as $14 billion. That’s a huge amount of money for the city to come up with.
Mamdani has his own idea. He wants to raise corporate taxes from 7.25 percent to 11.25 percent. That would make New York tied with New Jersey for the highest corporate tax rate in the country — and when you add in other taxes that already apply in New York, businesses here could end up paying even more than those in the Garden State.
That’s got people worried, especially business leaders and those already thinking about leaving New York for states with lower taxes. States like Florida and Texas don’t have income taxes at all, and many companies have already moved there in recent years.
It’s also a tricky spot politically for Governor Hochul. She’s up for re-election in 2026, and she knows raising taxes isn’t a popular move. She’s trying to walk a fine line — not wanting to upset voters who support Mamdani’s ideas, but also trying not to scare off businesses and moderate voters who don’t want to pay more.
Bruce Blakeman, a Republican who could run against Hochul in 2026, didn’t waste any time criticizing her. He said, “Kathy Hochul’s failed policies have already pushed businesses and residents out of New York for years.” He warned that with Mamdani’s influence growing, even higher taxes could be on the way.
Blakeman also pointed out that businesses in New York are already at a disadvantage. Adding more taxes could make it even harder for them to compete with companies in other states.
So what’s the bottom line?
Right now, Governor Hochul says raising taxes is not her plan. But behind the scenes, her team is clearly considering it as a way to pay for Mamdani’s big-ticket promises. Whether or not it actually happens will depend on how much pressure she gets from the left, how hard Republicans push back, and how much money the city really needs to make Mamdani’s vision a reality.
For now, the idea of tax hikes is still just that — an idea. But for many New Yorkers, even the possibility is enough to cause concern. After all, when politicians start talking about “free” services, taxpayers almost always end up with the bill.