Zohran Mamdani admits he might need plan B to fund $10B agenda – if he can’t hike taxes on the wealthy

Socialist mayoral candidate Zohran Mamdani acknowledged on Monday that he might have to devise an alternative strategy to fund his ambitious $10 billion agenda, which includes extensive benefits, in case he’s unable to secure tax increases on the ultra-rich and corporations.

During a campaign event focused on affordability in Queens, Mamdani reiterated that taxing the wealthy is the “most direct and effective method” to finance free transportation, city-run grocery stores, and other appealing initiatives, even as questions linger about the actual source of funding.

However, the self-professed Democratic socialist emphasized that securing funding for the programs is more crucial than the method chosen to raise it.

“Whether the funds come from additional taxes, an unexpectedly favorable (tax) assessment, previously untapped resources, or savings, the key point is that they are funded,” he stated.

Mamdani’s indication that he won’t abandon his progressive policies aligns with what he has been privately conveying to New York City’s business community for several months.

In two discussions with prominent business leaders facilitated by the Partnership for New York City, including one via Zoom last week, Mamdani remained firm on his intention to increase taxes on them and their enterprises, according to Partnership president Kathy Wylde.

Nevertheless, Wylde mentioned that Mamdani also showed “nuance,” effectively admitting he would require a backup plan in the likely scenario that Albany legislators and Governor Kathy Hochul, who needs to approve the tax increases, reject his proposal.

Hochul has indicated opposition to raising taxes.

“He made it clear he has specific goals but is flexible regarding the means to achieve them,” Wylde remarked.

“This openness prompted discussions on alternative methods to generate revenue or redirect resources that he would consider.”

The idea of a self-identified socialist taking residence in Gracie Mansion has left several business leaders throughout the city anxious, even before Mamdani’s strong win in the Democratic primary in June.

Mamdani has consistently expressed his desire to raise $10 billion for his extensive benefit program by targeting the affluent for additional taxes.

His proposal includes a 2% tax increase on New York City millionaires and a 4.5% hike on corporate taxes.

The modest tax increases prompted alarmist reactions, with billionaire grocery mogul John Catsimatidis threatening to shut down his Gristedes grocery chain if Mamdani were to be elected.

Since securing the Democratic nomination and becoming the frontrunner for mayor, Mamdani has attempted to build rapport with business leaders, albeit to a limited extent.

He engaged with around 100 CEOs in July during a meeting organized by the Partnership for New York City, yet his efforts to foster conversation have not entirely quelled their concerns.

Jeff Gural, chairman of GFP Real Estate, recounted a meeting with the “charismatic” Mamdani last week, where they shared common concerns about the city’s sharply uneven property tax framework.

However, Gural, a co-founder of Patriotic Millionaires, an organization advocating for increased federal taxes, cautioned Mamdani that increasing local taxes could lead to an outflow of wealthy residents.

“While higher federal taxes on the wealthy is a positive approach,” he explained, “people have the option to relocate if city and state taxes rise.”

Former Governor Andrew Cuomo, who lost to Mamdani in the primary and is now running independently for mayor, dismissed the likelihood of his opponent’s corporate tax plan succeeding in Albany.

“There’s ‘zero’ chance that his corporate tax proposal would pass,” Cuomo quipped. “That’s because he’s been in the Assembly for just a short time. No legislator would vote for such a bill.”

Bill Cunningham, a former aide at City Hall and in the governor’s office, noted that the idealistic Mamdani is facing the reality that funding his ambitious visions for New York City hinges on either increasing revenue or making budget cuts.

“Mario Cuomo always said, ‘You campaign in poetry, but you govern in prose,'” Cunningham noted. “The enchanting promises of free buses and stores and redistributing funds are the poetry of campaigning.

“However, the tangible governance, the prose, is what a mayor must navigate. There are limited means for government to generate revenue—it all comes from the populace and involves redistributing existing resources.”