Zohran Mamdani, the New York City mayoral candidate, has brushed aside worries that his plan to raise taxes on New Yorkers might cause them to leave the city. During an interview on “Andrew Schulz’s Flagrant with Akaash Singh” podcast, Mamdani joked about the idea that residents would flee New York due to higher taxes, calling the notion a “mountain out of a molehill.” He defended his proposals to increase corporate taxes, shift more of the burden to “richer and whiter neighborhoods,” and impose a 2% flat income tax on those earning over $1 million—claiming the measures were necessary for improving city services and redistributing wealth.
However, his critics, including former governor Andrew Cuomo and Republican mayor Scott Singer, argue that the tax hikes could have significant financial repercussions for New York. Cuomo, a former Democratic governor who runs as an Independent, warned that high taxes and socialist policies would drive people to flee the city. “You keep taxing businesses and wealthy people in New York, there will be nobody left,” he said, asserting that Mamdani’s proposals are an example of “socialist” governance that could erode the city’s economic stability.
Singer echoed these concerns, predicting that the proposed 17% marginal tax rate—accounting for both state and local taxes—could lead to a substantial exodus of businesses and residents. “With jobs more mobile due to technology and companies finding more affordable office space elsewhere, there’s less reason for people to stay in New York,” Singer warned. He criticized Mamdani’s stance as short-sighted, arguing that raising taxes without addressing the city’s long-term economic challenges could undermine its competitiveness and growth.
Mamdani’s position has also drawn scrutiny from business leaders and financial analysts. While he claims his plan will provide funds for public services and infrastructure, opponents argue that higher taxes could deter investment and push businesses out of the city, exacerbating economic decline. The debate over Mamdani’s policies has become a focal point in the broader conversation about the role of progressive taxation in urban centers like New York, where the balance between taxation and economic growth is a contentious issue.