New York's mayor, Zohran Mamdani, has been whining that his $128 billion budget, which calls for $5 billion in new spending, is short somewhere between $5 billion and $7 billion.
Instead of eliminating waste or freezing expenses to balance the bloated budget, Mamdani is demanding that Gov. Kathy Hochul, D-N.Y., and the state legislature raise taxes on corporations and the wealthy to close the gap.
And if they fail to do so he has threatened to raise property taxes on every homeowner in the city.
Mamdani's blackmail scheme would raise the average property tax rate on three million homes and 100,000 commercial properties by 9.5%.
The current rate of 12.8% would jump to 13.5%.
The typical single- family homeowner property tax would increase by $700 and would worsen the affordability crisis for working-class folks struggling to make their monthly mortgage payments.
The mayor claims that the increases would generate over $14 billion in new tax revenue over four years.
To placate Mamdani, Gov. Hochul initially agreed to give him $1.7 billion to help finance universal childcare.
Then she announced in February that her state budget includes an additional $1.5 billion to help balance his budget.
The governor is giving away the money despite warnings from State Comptroller Tom DiNapoli, that her outyear budget deficits are projected to total $27.5 billion through the state's 2030 fiscal year.
Because it is not smart politics to raise taxes in an election year, Hochul has been opposing the Mandani plan.
When asked by the New York Post earlier this month if she will surrender to Mandani's blackmail, she said "No, I’m firm on this."
Concerned that the wealthiest would move out of the state, Hochul added, "I want to make sure that people are still here, and we don't end up having those taxes pushed down to lower levels of income to make up for the loss."
However, ideologically-driven Democrats, who control both houses of the state legislature, are not in sync with the governor.
The state Senate's majority leader, Andrea Stewart-Cousins, ignoring the governor's concerns, announced at a press conference that tax increases for the rich and corporations are on the table.
She told reporters, "I think I've said repeatedly that we are certainly trying to meet the moment, and revenue raises would certainly be part of our package.
"In general, we have always believed in this progressive tax structure, and we have always put forth ways that we can meet the needs of New Yorkers and obviously we’re interested in helping New York City."
The so-called "Fair Share Act" that's being promoted by Mayor Mamdani and his Democratic Socialist comrades, calls for a 2% increase in city income taxes on people making over $1 million annually; corporate income tax increase on financial companies from 9% to 10.8%; and an increase on other corporations from 8.85% to 10.62%.
The socialist plan, if adopted, is expected to bring $5.4 billion in new revenues annually.
E.J. McMahon of the Manhattan Institute has pointed out that "In New York City, the political epicenter of the 'tax the rich movement,' resident income millionaires are currently subject to the highest combined state and local taxes in the country, 14.8%.
Combined with federal taxes, the top rates for city residents are among the highest in the world, reaching 52% on wages and salaries and 38.6 % on capital gains.”
And if Mamdani has his way, the combined taxes on the wealthy will be the highest in the universe!!
So, what can we expect from the governor?
Not much.
At a press conference with Mandani on March 4, when asked about raising taxes, Hochul insisted she would not be a "fall man."
She went on to say, "This is not a frustrated face. I am not frustrated. I know how to do this. . . . I know how to negotiate. I know how to get the results that I need that I think are best for New Yorkers."
The governor's claim that she "knows how to negotiate" is ludicrous.
Since she's assumed the chief executive's chair, Democratic legislators have been taking her to the cleaners. For example, when she agreed to a pay raise for overpaid and underworked legislators, she got nothing in return. She squandered the leverage she had over them.
Hochul couldn't negotiate the approval of her choice for the chief judge on the state's Court of Appeals. Her nominee was the first rejected by the Legislature in the state’s history.
Here's what could happen…
The Democratic Legislature will pass the Mamdani tax on the rich plan, and the governor will veto it. But she will not use the power of her office to sustain her veto.
To enhance her image as a born-again fiscal watchdog, the governor will issue strongly worded press releases concerning the legislature's excesses and that will be about it.
Yes, New Yorkers should expect Governor Hochul to be what she excels at being — a political milquetoast.
George J. Marlin, a former executive director of the Port Authority of New York and New Jersey, is the author of "The American Catholic Voter: Two Hundred Years of Political Impact," and "Christian Persecutions in the Middle East: A 21st Century Tragedy." Read more George J. Marlin Insider articles — Click Here Now.
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