Tag: democratic socialists

You can’t say we didn’t warn New York what was going to happen if it elected Zohran Mamdani, but I gotta say, I don’t think anyone predicted it would start collapsing so quickly. But, alas, it has. That socialist utopia that Mamdani was supposed to deliver has instead turned into a slow-motion fiscal catastrophe a mere two months in — and even the liberal media is starting to notice.

Mamdani unveiled a $127 billion budget for fiscal year 2027 this week — a staggering $5 billion increase over the prior year.

But what’s $5 billion between socialists, right?

To put that into perspective, Mamdani’s proposed budget is actually larger than the budgets of 47 U.S. states, including Florida, which has nearly twice the population. And somehow, it still isn’t enough. The city is staring down a $5.4 billion deficit, with the real gap potentially closer to $12 billion when you do the actual math.

So what was his plan? Tax someone else.

Mamdani went straight to Albany looking for a handout, demanding that Gov. Kathy Hochul raise taxes on the “ultra-wealthy” and the most profitable corporations. When Hochul told him to pound sand and cut spending instead, he obviously couldn’t do that, and now he is looking at saddling homeowners with a 9.5% property tax hike.

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Mayor Zohran Mamdani is already short of funds for his socialist dream for New York City. Like a true communist, his plan is to increase taxes on homeowners while raiding retirement and healthcare funds. Ironically, communists are supposed to support the working man, but in reality, they support the non-working man who needs more money from the working man to keep from having to work.

On February 17, 2026, Mayor Mamdani presented his first preliminary budget and framed the city’s finances as a choice between two paths. He delivered an ultimatum to Governor Kathy Hochul and the state legislature: approve higher taxes on the wealthy or he would use the limited tools under his direct control to close a projected $5.4 billion shortfall.

His preferred path calls on Albany to raise personal income taxes by 2 percent on New Yorkers earning over $1 million and to increase corporate taxes on the most profitable companies. If the state refuses, he says he will pursue what he describes as a last resort: a 9.5 percent property tax hike, the first major increase in more than 20 years, affecting roughly 3 million residential units, along with drawing down approximately $1.2 billion from the city’s reserves, including the Rainy Day Fund and retiree health benefit trusts.

The proposal to tap retirement-related funds has generated the strongest backlash. Mamdani’s plan includes taking $229 million from the Retiree Health Benefits Trust, which pays health insurance premiums for retired city workers such as teachers, police officers, and sanitation workers.

Using money set aside for future medical costs to cover today’s operating deficit shifts long-term obligations into the current budget cycle. Budget watchdogs, including the Citizens Budget Commission, warn this would leave the city less prepared to meet healthcare costs for an aging workforce.

Mamdani insists he does not want to touch these funds and describes this as a harmful path he hopes to avoid. He is using the threat to pressure Governor Hochul into approving higher taxes on the wealthy.

Mamdani has also pushed to shift city pension investments away from what he calls harmful industries, including certain fossil fuel companies and firms tied to the conflict in Gaza. Pension trustees and union leaders argue this amounts to political intrusion into retirement assets and conflicts with their fiduciary duty to maximize returns for retirees.

By law, trustees must focus solely on financial performance. Critics contend that divesting from high-performing sectors for ideological reasons narrows the investment pool and can reduce long-term returns. Analysts noted that the Tel Aviv Stock Exchange significantly outperformed the S&P 500 in 2025.

Avoiding such assets means forfeiting gains that help keep pension funds solvent. Even a one or two percent underperformance compounded over time could create substantial funding gaps.

The dispute has escalated into a showdown with New York City Comptroller Mark Levine, the legal custodian of the pension funds. Levine recently announced plans to resume investing in Israel Bonds, calling them a long-term, secure investment that has never missed a payment in 80 years. Mamdani opposes the move, arguing the city should not support a foreign government involved in the Gaza conflict.

However, the mayor does not control the pension boards outright. The comptroller and union representatives hold significant seats, limiting Mamdani’s ability to force divestment. Critics say he is attempting to pressure the boards into adopting his position.

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New York City’s new democratic socialist (communist) Mayor Zohran Mamdani was grilled by state lawmakers in Albany this week over plans to fund his agenda by taxing the rich.

This is the difference between campaigning and governing. Many, if not all, of Mamdani’s ideas sound great on paper to leftists. Implementing them in real life is a different thing, entirely.

Some of the people who questioned him are undoubtedly wondering why he can’t even seem to be able to get the snow removed or pick up the city’s trash.

WRGB News reports:

“Honeymoon is over” Zohran Mamdani grilled by lawmakers as he proposes to “tax the rich”

Mamdani is asking for a 2 percent raise in personal income taxes to the top one percent of New York City residents, arguing someone making $1 million can afford $20,000 in more taxes, and that the One Big Beautiful Bill Act would deliver federal tax cuts to more than make up for that sum.

Lawmakers then had the opportunity to question Mamdani’s proposals on all of the above. Lawmakers from other cities shared concerns that if New York City received more money, they would receive less. Many asked about his proposal to increase taxes on the wealthy, and the impact it could have not just on New York City, but the rest of the State as well. Others questioned Mamdani’s actions in addressing antisemitism.

“Once the honeymoon is over, which I think you’ve just felt, you may well prefer three minutes to 10,” State Senator John Liu, Chairman of New York City Education Committee ( D ), told Mamdani at one point. “Speaking of which, you know, it’s mid-February, so I will respectfully say that the time for blaming past Mayors and Governors is passed. We need to hear the details of your plan. And it’s good to hear your revenue proposals.”

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Margaret Thatcher once characterized socialism by saying, “The problem with socialism is that you eventually run out of other people’s money.” The experience of Zohran Mamdani’s quixotic attempt to transform New York City into a socialist paradise, an oxymoron, demonstrates that Thatcher’s observation requires an addition: you also need the permission of the people paying for it.

In layman’s terms, like a child asking his mother for ice cream money, Mamdani asked Governor Hochul for permission, and she said “no.”

New York City Mayor Zohran Mamdani’s campaign promises face structural barriers that make implementation impossible. Under New York State Constitution Article XVI, NYC mayors cannot raise taxes independently. Only the state legislature can authorize local tax increases, requiring approval from both chambers and Governor Kathy Hochul.

During a PIX11 interview in early January 2026, Hochul stated that increasing taxes on wealthy New Yorkers is “completely off the table.” She pointed out that 1.5% of New Yorkers pay one-third of the state’s entire budget. She refuses to risk driving them out with higher taxes.

Mamdani proposed a 2-percentage-point increase on NYC income tax for those earning over $1 million, raising the rate from 3.9% to 5.9%, plus increasing corporate tax rates from 7.25% to 11.5%. His campaign estimated this would generate $4 billion annually. Without this revenue, his agenda collapses.

Hochul’s January 2026 $260 billion state budget includes no income tax increases and extends the 7.25% corporate tax rate for three more years, rejecting Mamdani’s proposed increase. While State Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins have expressed openness to tax increases, Hochul faces her own 2026 re-election campaign and a primary challenge from Lt. Gov. Antonio Delgado.

Even if both legislative chambers pass tax increases, Hochul can veto the legislation. With her own election approaching, it is unlikely that she would take a radical decision that would alienate her wealthy donor base. Overriding a gubernatorial veto requires a two-thirds supermajority in both chambers, which Mamdani’s allies cannot achieve.

NYC Comptroller Mark Levine announced in mid-January 2026 that the city faces a $2.2 billion deficit for fiscal year 2026 and a $10.4 billion deficit for fiscal year 2027, totaling a cumulative gap of $12.6 billion. Levine blamed chronic underbudgeting by the Adams administration for rental assistance, overtime, shelter costs, public assistance, DOE due process cases, and MTA contributions, totaling $3.8 billion in unbudgeted expenses for FY2026 alone. He stated that the deficit was not caused by a bad economy but by budgeting decisions from the previous administration.

This is the first time since the Great Recession that the city faces a budget shortfall of this magnitude this late in the fiscal year. Mamdani’s first deputy mayor Dean Fuleihan stated the administration would only include new tax revenue if it were included in Hochul’s budget, which it was not.

With a severe revenue shortfall, Mamdani’s plans for free programs are unlikely to materialize. He has promised fare-free buses by eliminating the $2.90 fare on all MTA buses citywide, universal childcare, and state-funded “baby baskets” for every newborn containing formula, diapers, and postpartum supplies.

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