Tag: taxes

Why Mamdani’s ‘Free Childcare’ Won’t Work

“While families with young children comprise about 14 percent of the city’s population, they comprise about 30 percent of the set of New Yorkers who are leaving the city,” said Mayor-elect Zohran Mamdani at a visit to a day care center in East Flatbush, Brooklyn, where he hyped his plans for those families.

Mamdani ran on the most ambitious universal child care proposal in the country: free day care for all kids ages 6 weeks and above. Apparently, this pitch was compelling to the city’s beleaguered parents: The self-styled socialist won by a hefty margin.

New York City already has universal child care guaranteed to 3- and 4-year-olds. When Bill de Blasio ran for mayor in 2013, he aimed to distinguish himself from then-Mayor Michael Bloomberg, who had created 4,000 new free pre-K seats but allocated them only to poor kids. De Blasio universalized the system in 2014.

Mamdani wants to expand to an even younger age group, which would cost an extra $6 billion a year. Those funds aren’t available in city coffers, so Mamdani would need cooperation from the state government to raise the money, likely by taking another leaf from the de Blasio playbook and trying to hike taxes on the very rich.

Mamdani’s political intuition is sound: The affordability issue is salient. The number of New York City families with three kids or more has dropped by nearly 17 percent over the last decade. Families with young children have been self-exiling in droves since the pandemic. The under-20 population has dropped by almost 200,000 over the last few years. The city’s public school system has 915,000 students enrolled, down from 1.1 million a decade ago. New York’s comptroller reports that the average cost of private child care for babies and toddlers now sits at $18,200 annually for family-based care and $26,000 annually for center-based care, shooting up in recent years. It’s no wonder so many parents are clamoring to turn over their kids to the warm embrace of the state. They feel left out in the cold.

But universal 3-K (for 3-year-olds) hasn’t served families as well as its supporters promised it would. It distorted the private market, driving day cares out of business. Rich families have used nifty hacks to get their kids into the best centers, while the poor are left with the rest. The universal nature of it might be politically valuable when you’re currying favor with the tony Park Slope crowd, but it means that child care for rich people is subsidized by the slightly richer, and that day cares serving the poorest neighborhoods don’t get what they need. Parents who choose to stay home with their kids or employ nannies get shafted, and costs for all forms of child care are driven up the more the government intervenes in the market. More government involvement won’t make that better.

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Dems Have Gone Radio Silent On One of Their Main Talking Points, Trump Highlights It

President Donald Trump said Democrats have stopped focusing on affordability because, he argued, they have been “getting beaten badly” on the issue after years of high prices and inflation.

In remarks addressing the economy, Trump said affordability was once a central Democratic talking point but has since disappeared as prices have come down under his administration.

“You don’t hear the word affordability issued by the Democrats anymore,” Trump said.

“Now they’re going into other things because they’re getting beaten badly on affordability.”

Trump said when he returned to office, he inherited severe economic problems, including sharply higher consumer prices.

“Remember that when I was elected, I came into office, I inherited a total mess, starting with eggs, which were four times higher than they were just a year before,” Trump said.

Trump credited his administration with quickly reducing prices, pointing to egg costs as an example.

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Gavin Newsom Gets Dragged for Pledging to Send Winter Storm Resources to Tennessee While Fire Victims in California Remain Homeless

California Governor Gavin Newsom recently bragged on Twitter/X that he is sending aid to the state of Tennessee following the harsh winter storm.

Meanwhile, thousands of victims of the California wildfires that happened over a year ago remain homeless.

This is Newsom playing pretend. In his mind, he is already the President of the United States and he wants everyone to get used to the idea.

FOX 5 in California reports:

Gov. Newsom deploys California-based emergency team to Tennessee for winter storm aid

Governor Gavin Newsom has deployed specialized emergency management resources from California to assist Tennessee as the state responds to impacts from a deadly winter storm.

According to the Governor’s Office, a 30-member California-based federal Complex Incident Management Team has been sent to support “response and life safety efforts” following an icy snowstorm that created hazardous travel conditions, widespread power outages and emergencies across the state. Multiple deaths have been reported in connection with the storm.

“I’m thankful to the local firefighters, who are stepping up to help fellow Americans during their time of need,” said Newsom. “When disaster strikes, California answers the call to support our partners across the country. Deploying this Incident Management Team to Tennessee reflects a commitment to protecting lives and helping our neighbors respond and recover to extreme weather events.”

The deployment comes as large portions of the eastern United States recently faced heavy snowfall, ice accumulations and subfreezing temperatures, disrupting critical infrastructure.

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President Trump Files $10 Billion Lawsuit Against IRS for Leaking His Tax Returns

President Trump, Eric Trump, Don Jr., and the Trump Org filed a lawsuit against the IRS for leaking their tax returns.

They are seeking $10 billion in damages.

In September 2023, federal prosecutors charged a former IRS contractor who worked for the agency from 2018 to 2020 with unlawfully obtaining and disseminating the tax details of a high-ranking public official and numerous affluent Americans to media outlets.

According to court documents and an official press release from the Department of Justice, Charles Littlejohn, 38, of Washington, D.C., stole tax return information associated with a high-ranking government official, referred to as Public Official A  – now known as Donald Trump. He then disclosed this information to a news organization identified as News Organization 1 – now known as The New York Times.

Littlejohn reportedly stole IRS information on thousands of wealthy people. The stolen information was then disseminated to two news outlets (New York Times and ProPublica).

“In July and August 2020, Littlejohn separately stole tax return information for thousands of the nation’s wealthiest individuals. Littlejohn was again able to evade IRS detection. In November 2020, Littlejohn disclosed this tax return information to News Organization 2, which published over 50 articles using the stolen data. Littlejohn then obstructed the forthcoming investigation into his conduct by deleting and destroying evidence of his disclosures,” the DOJ previously said.

Littlejohn was only sentenced to five years in prison. Political leaders said he should have been sentenced to 60 years.

“The IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization to the New York Times, ProPublica and other left-wing news outlets, which was then illegally released to millions of people,” a spokesperson for Trump’s legal team told CNBC.

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Mamdani’s NYC Socialist Experiment Ended Before It Began

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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$50 Billion and 30K Dead People: HUD’s Turner Exposes Waste, Fraud and Abuse

HUD Secretary Scott Turner announced new policy changes aimed at restricting federal housing benefits to U.S. citizens, tightening oversight of taxpayer-funded programs, and addressing what he described as large-scale waste and payment errors within the Department of Housing and Urban Development.

Turner said HUD has moved to block non-permanent residents from accessing FHA-insured mortgages, while also launching audits of public housing authorities to ensure federal housing dollars are not being used to support illegal aliens.

HUD Secretary Scott Turner announced new policy changes aimed at restricting federal housing benefits to U.S. citizens, tightening oversight of taxpayer-funded programs, and addressing what he described as large-scale waste and payment errors within the Department of Housing and Urban Development.

Turner said HUD has moved to block non-permanent residents from accessing FHA-insured mortgages, while also launching audits of public housing authorities to ensure federal housing dollars are not being used to support illegal aliens.

“We eliminated non permanent residents eligibility for FHA insured mortgages, and we are auditing public housing authorities to ensure taxpayer dollars don’t support illegal aliens,” Turner said.

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Gavin Newsom shoots down claim $236M program for California’s mentally ill has helped just 22 people in four years

California Governor Gavin Newsom’s $236 million program to help those with severe mental illness who bounce between homelessness and jail has helped a measly 22 people since the its launch in 2022, a new report reveals.

Newsom’s CARE Court was billed as a “completely new paradigm” to get the mentally ill off the streets and into treatment, with up to 12,000 people expected to benefit, the Daily Mail reported.

But only 22 people have been sent to treatment over the past four years, after a state analysis found that up to 50,000 could be eligible for the program.

The 22 court-ordered cases were among roughly 3,000 petitions filed statewide as of October. Of those, only 706 were approved, including 684 voluntary agreements that never intended the meet program’s goal, according to the Daily Mail.

Newsom has denied the report.

“CARE Court has helped THOUSANDS of Californians into care to recover — not 22. Even under the most NARROW definition (court-ordered treatment plans, which is one of many treatment outcomes), the number is 600+ and growing,” his press team tweeted.

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IT BEGINS: Zohran Mamdani Announces Plans to ‘Tax the Wealthy’ to Compensate for NYC Budget Deficit 

Well that was fast.

Zohran Mamdani has been mayor of New York City for less than a month and he is already talking about raising taxes on the ‘wealthy’ to make up the city’s budget deficit, which he claims is on par with the Great Recession.

Get ready to see a lot of Uhauls leaving the city.

CNBC reports:

New York Mayor Mamdani says city must hike taxes on wealthy to fill $12 billion deficit

New York City Mayor Zohran Mamdani on Wednesday said the city’s wealthiest must pay more in taxes to help fill the staggering budget deficit of more than $12 billion that he was left by his predecessor.

“This is at a scale that’s actually greater than what we saw here in New York City during the Great Recession,” Mamdani said of that budget hole during an interview with CNBC “Squawk Box” co-anchor Andrew Ross Sorkin at City Hall.

The Democrat, who took office on Jan. 1 after campaigning on a platform of hiking taxes on the rich, attributed the big deficit to “gross fiscal mismanagement.”

He pointed to actions taken by former Mayor Eric Adams, and by ex-New York Gov. Andrew Cuomo, whom he soundly defeated in the November general election, for causing that budget gap.

Mamdani vowed that his administration will be up front with New Yorkers about budget issues that have been “hidden from them for far too long.”

City Comptroller Mark Levine earlier this month said the new mayor faces a budget shortfall that is projected to total $12.6 billion over the next two fiscal years.

That comprises a $2.2 billion projected deficit on the city’s nearly $116 billion budget for fiscal 2026, which ends on June 30, and a $10.4 billion gap in fiscal 2027.

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Proof Positive: CA’s Homeless Industrial Complex Is Just a Giant Money-Laundering Operation

Laura Ingraham and Bill Essayli detailed new developments in California’s Homelessness Fraud and Corruption Task Force during a recent exchange focused on the state’s handling of taxpayer-funded homeless services and a growing number of criminal cases tied to misuse of public money.

Ingraham opened the discussion by pointing to the origins of the task force and its narrow focus on homelessness programs, asking why those services became the priority of the investigation.

“Back in April, you launched this task force to investigate corruption in California. You focused on homeless services. Tell us why. This might be just the tip of the fraud iceberg here,” Ingraham said.

Essayli explained that his background as both a former prosecutor in Los Angeles and a former state legislator shaped his decision to examine homelessness spending, particularly given the scale of public investment and the lack of measurable improvement.

“Yeah, Laura, remember, before I was the prosecutor here in LA, I was in the legislature. Over the last five years, California spent $24 billion on homelessness, and it only got worse. So of course, the question is, where did the money go? What happened to 24 billion?” Essayli said.

He said those questions led directly to the creation of the Homelessness Fraud and Corruption Task Force. Essayli acknowledged that federal investigations require time, even as public frustration grows.

“So I launched this task force, and just quickly, I mean, federal investigations do take time. I know the public wants action. It takes time to put these cases together,” he said.

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REPORT: $236 Million Gavin Newsom Program to Help the Mentally Ill Has Helped Only 22 People in Four Years

A $236 million program heralded by California Governor Gavin Newsom that was intended to help get mentally ill people off the street has helped a whopping 22 people in four years, according to new reports.

That sounds about right for Newsom. Wouldn’t you like to know how much the people who ran this program were paid?

It’s fascinating how California keeps throwing massive amounts of cash at their homeless problem and the problem just keeps growing, while lots of people get wealthy by running these programs.

The New York Post reports:

Gavin Newsom shoots down claim $236M program for California’s mentally ill has helped just 22 people in four years

California Governor Gavin Newsom’s $236 million program to help those with severe mental illness who bounce between homelessness and jail has helped a measly 22 people since the its launch in 2022, a new report reveals.

Newsom’s CARE Court was billed as a “completely new paradigm” to get the mentally ill off the streets and into treatment, with up to 12,000 people expected to benefit, the Daily Mail reported.

But only 22 people have been sent to treatment over the past four years, after a state analysis found that up to 50,000 could be eligible for the program.

The 22 court-ordered cases were among roughly 3,000 petitions filed statewide as of October. Of those, only 706 were approved, including 684 voluntary agreements that never intended the meet program’s goal, according to the Daily Mail.

Newsom has denied the report.

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