Former President Barack Obama’s former Treasury Secretary, Jack Lew, has expressed concerns about Zohran Mamdani’s potential impact on New York City as the mayoral race heats up. In an interview on CNBC’s ‘Squawk on the Street,’ Lew outlined his worries regarding Mamdani’s plans to implement higher taxes on corporations and the wealthy, which he believes may not lead to the desired outcomes for the city. Lew, who is known for his pragmatic approach to economic policies, argues that while populist sentiments might resonate with certain voters, their practical effectiveness in a complex city like New York is questionable.
Mamdani, a 33-year-old state assembly member from Queens and a proud democratic socialist, is positioning himself as a candidate who represents a bold vision for New York City. He has proposed a range of policies aimed at ‘Trump-proofing’ the city, which includes significant corporate tax hikes and increasing the tax burden on the wealthiest New Yorkers by a small percentage. During a recent appearance on The Breakfast Club radio show, Mamdani explained that these measures are designed to ensure that the city’s financial stability is safeguarded against potential economic downturns. He emphasized that the taxes proposed are a minor financial burden for the wealthy, noting that they amount to a negligible increase in their annual income.
However, Mamdani’s policies have sparked controversy, particularly due to a campaign document that suggests moving NYC’s tax burden onto ‘richer and whiter neighborhoods.’ This has led to criticism from various quarters, with some arguing that such a policy may exacerbate existing social inequalities and could alienate certain segments of the population. Despite the backlash, Mamdani remains focused on his vision for a more equitable New York, even as he faces opposition from both within and outside his political base. His campaign has also seen some resistance from figures like rapper 50 Cent, who has publicly expressed disapproval of the tax policies, highlighting the polarizing nature of Mamdani’s approach.
Lew’s concerns extend beyond the immediate economic impact of Mamdani’s policies. He has pointed out that New York’s governance structure means many of the proposed policies would require approval from the state legislature or governor, which could potentially block or modify the implementation of certain measures. Lew’s warning underscores the importance of political strategy in urban governance, as well as the potential for policy differences to influence the broader political landscape in New York and beyond.