Mamdani pushes tax hike in direct blow to Hochul’s budget plan

By Jerry McConway, 
updated on January 22, 2026

As they say… let the games begin.

New York Governor Kathy Hochul endorsed Zohran Mamdani, knowing full well the two of them were not on the same page regarding taxes and how he would be able to pay for his socialist agenda.

Now, she is paying the price, as Mamdani is pushing his tax plans that he knows she does not endorse.

Yes and no

When Hochul first endorsed Mamdani, she knew he wanted to raise taxes to pay for his agenda, something she did not agree with.

She tried to set expectations by announcing that she could back his free childcare program, but there was not enough money to back his free bus program.

At the time, she stated, “I cannot set forth a plan right now that takes money out of a system that relies on the fares of the buses and the subways. But can we find a path to make it more affordable for people who need help? Of course, we can.”

She further explained, “Child care, I already committed to. I’m committed to this as mom governor, I get it, but also to do it statewide right now, it’s about $15 billion — the entire amount of my reserves.”

Losing businesses

Mamdani is still pedal to the metal, even though a recent report showed that New York City lost nearly 5,000 businesses last year.

Now, not all of these businesses left because of Mamdani, but there were clearly business owners who feared being overly taxed who left for greener pastures.

To add insult to injury, a recent report by the Public Policy Institute of New York State found that more than 70% of the state’s employers do not think the economic conditions are very good in New York.

More importantly, a large percentage of those businesses cited the state’s taxes and business regulations as a hindrance to running a successful business in the state. With Mamdani’s call for raising taxes, that number is likely to chase even more businesses out of the state.

Costing Hochul

When Hochul endorsed Mamdani, I said it could backfire on her because I have seen plenty of Mamdanis come and go. There is no loyalty, only pressure, and Mamdani is now starting to squeeze.

During a recent event, Mamdani told the media, “Our administration is preparing to make the case that it is the time for New York’s most profitable corporations and wealthiest residents to pay their fair share.”

This goes directly against a recent announcement by Hochul, which now puts her in a no-win situation.

If she starts to hammer business owners and the city’s wealthiest residents, she loses their support. And if she does not, then Mamdani blames his failed agenda on the governor for not helping him. Either way, it is likely a political death sentence for Hochul.

About Jerry McConway

Jerry McConway is the Senior Editorial Director at American Digest Media, as well as the featured columnist on Real Talk Digest. He has been covering politics for more than a decade. His no-nonsense writing style makes him enemy number one in DC. His mission is to tell the truth to readers, good or bad, something the mainstream media has failed to do for decades. What sets Jerry apart from his competition is reader loyalty. They don't always agree with him, but they know he tells them the truth. Love him or hate him, you can't ignore him.

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