Heastie supports Mamdani’s millionaire tax increase, potentially leading to a conflict with Governor Hochul.
Assembly Speaker Carl Heastie has indicated a commitment to collaborate with mayoral front-runner Zohran Mamdani in efforts to raise taxes on New York’s wealthiest residents, a move that signals a potential confrontation with Governor Kathy Hochul in the upcoming legislative session. This declaration was made during an endorsement rally at the Northeast Bronx YMCA, where Heastie formally supported Mamdani’s candidacy for mayor.
Governor Hochul, who is preparing for a challenging re-election campaign in 2026, has categorized any tax increases on affluent residents as off the table for the upcoming budget year. This stance comes in spite of her recent endorsement of Mamdani, highlighting a disconnect between state leadership and local electoral dynamics. Under current state law, Mamdani, should he secure the mayoral position, would be unable to unilaterally impose higher taxes on wealthier New Yorkers.
The potential clash over fiscal policy is heightened by Mamdani’s proposals to implement an additional 2% tax on incomes exceeding million, as well as a corporate tax increase to 11.5%. These measures are integral to his affordability strategy, which aims to freeze rent for stabilized tenants, expand accessibility to free child care across the city, and make public transit free of charge.
In response, Heastie expressed a desire to work collectively with Mamdani, stating that discussions surrounding revenue generation would be robust in the forthcoming legislative session. Notably, a recent Marist University poll underscores the urgent need for affordability measures; 88% of New Yorkers perceive the city as either “not very affordable” or “not affordable at all.”
Despite widespread support among constituents for tax hikes on the wealthy, opposition from New York’s business community looms large. Heastie and Senate Majority Leader Andrea Stewart-Cousins have historically backed taxation measures for millionaires, positioning them as influential figures in budget negotiations alongside Hochul.
Furthermore, Mamdani has conveyed a willingness to negotiate aspects of his tax plan, suggesting a potential reduction of the proposed millionaire tax hike from 2% to 1% if alternative revenue sources can be identified. This flexibility aims to ensure that crucial funding priorities are met, irrespective of the methods of revenue generation.
Hochul has maintained her position against new tax hikes on the wealthy while endorsing Mamdani, emphasizing her right to disagree on specific policy points even as she supports his broader candidacy. After Heastie’s remarks, Stewart-Cousins’ spokesman reiterated her alignment with Heastie’s vision, reiterating the need for a new millionaire tax—an idea that has faced repeated setbacks in prior budget discussions due to Hochul’s objections.
As the political landscape in New York evolves, the interplay between local aspirations for progressive taxation and state-level fiscal policy will undoubtedly shape the city’s trajectory in the coming years. Media News Source.
