In a surprising twist, Zohran Mamdani, the Democratic socialist front-runner for New York City mayor, has acknowledged the possibility of needing alternative funding strategies for his ambitious $10 billion agenda.
According to the New York Post, the candidate, who secured a commanding win in the June Democratic primary, admitted on Monday that if his proposed tax increases on the wealthy and corporations are blocked, he may need to pivot to other revenue sources to support programs like free buses and city-owned grocery stores.
Mamdani's journey to this point began with a significant victory in the Democratic mayoral primary earlier this year. His lopsided win positioned him as a leading contender for the mayoral seat. Central to his campaign is a bold $10 billion plan aimed at addressing affordability through initiatives such as free public transportation and municipally operated grocery outlets.
During a recent campaign event focused on affordability in Queens, Mamdani emphasized that increasing taxes on the city's wealthiest residents and corporations remains his primary strategy. He has proposed a 2% tax increase on millionaires and a 4.5% hike on corporate entities. However, he faces significant resistance, as Gov. Kathy Hochul has publicly opposed raising taxes, and Albany lawmakers are also likely to reject his proposals.
Behind closed doors, Mamdani has been engaging with New York City business leaders to discuss his plans. As early as July, he met with approximately 100 CEOs in a session organized by the Partnership for New York City to foster dialogue. More recently, he participated in a Zoom meeting last week with the same group, maintaining his focus on tax increases but signaling a willingness to explore other options.
The business community has reacted with apprehension to the prospect of a socialist mayor. Some leaders have issued stark warnings about the potential impact of higher taxes. Billionaire supermarket owner John Catsimatidis, for instance, threatened to shutter his Gristedes chain if Mamdani wins the election.
Jeff Gural, chairman of GFP Real Estate, met with Mamdani last week to discuss issues like the city's inconsistent property tax system. Gural cautioned that increasing taxes at the city level could drive affluent residents out of New York. He stated, "Higher taxes on the wealthy at the federal level is a good idea. But people can move if you raise taxes at the city and state level."
Former Gov. Andrew Cuomo, who was defeated by Mamdani in the primary and is now running as an independent candidate for mayor, dismissed the feasibility of the corporate tax proposal. Cuomo asserted, "That’s because he’s only been in the Assembly for 20 minutes. No legislator could vote for that bill." His comments reflect a broader skepticism among political figures about Mamdani's fiscal strategy.
Despite the opposition, Mamdani has expressed a pragmatic approach to funding his vision. He said, "If this money is funded by the additional taxes or it’s funded by a better-than-expected (tax) assessment, or it’s funded by a pot of money that wasn’t previously spoken about, or savings that have come in, then the most important thing is that it’s funded." This statement underscores his determination to see his agenda through, regardless of the method.
Kathy Wylde, president of the Partnership for New York City, noted Mamdani's approach during their meetings. She said, "He stated he was clear on his goals, but open on how to achieve them." Wylde added, "Which enabled people to think that if there were other ways to raise money or relocate resources, that he would be open to that."
Bill Cunningham, a former City Hall and gubernatorial aide, offered a perspective on the challenges Mamdani might face if elected. He remarked, "You know Mario Cuomo used to say that you campaign in poetry, but you govern in prose." Cunningham elaborated, "The poetry of free buses and stores and shifting money around to certain priorities — that’s the poetry of the campaign. But the brick-and-mortar, the prose, is what you have to do as mayor."
Cunningham's comments highlight a critical tension in Mamdani's campaign. He further noted, "And there’s only certain ways the government gets money. It comes from people and it comes from redistributing what you already have." This observation points to the practical limitations Mamdani may encounter in turning his vision into reality.
As the mayoral race continues, Mamdani's ability to balance his socialist ideals with the realities of governance will be closely watched. His openness to alternative funding methods suggests a willingness to adapt, even as he champions progressive policies. Yet, with opposition from both political and business spheres, the path forward remains uncertain.
The outcome of Mamdani's proposals could set a precedent for how New York City addresses affordability and inequality. Whether through tax increases or other means, his $10 billion agenda represents a significant shift in policy direction. For now, voters and stakeholders alike await clarity on how these ambitious plans will be financed.