New York City Spending Surges, But Quality of Life Declines

Mayor Mamdani proposes tax hikes on wealthy to address 'fiscal crisis', but critics warn it will only hurt middle class

Published on Feb. 25, 2026

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New York City's population has remained largely flat since 2018, yet government spending has surged by nearly 50% over the same period, from $85 billion to $127 billion under Mayor Zohran Mamdani's proposed budget. Despite the massive increase in per-capita spending, the city has seen a decline in public safety, education outcomes, and quality of life metrics. Rather than address the root issue of runaway spending, Mamdani is now proposing tax hikes on the wealthy, which critics warn will only drive more high-income residents and businesses out of the city, further exacerbating the fiscal crisis and ultimately leading to higher taxes on the middle class.

Why it matters

New York City's fiscal challenges highlight a broader trend playing out across the United States, where government spending has surged in recent years without commensurate improvements in public services. As politicians look to raise taxes on the wealthy to plug budget gaps, there are concerns that this approach will backfire by accelerating the exodus of high-income residents and businesses, ultimately forcing the middle class to bear the brunt of the tax burden.

The details

Since 2019, major felonies in New York City are up 30%, felony assaults are up 42%, robberies are up 24%, and car theft has nearly tripled. Rat complaints are up 19%, the homeless shelter population has exploded by 50%, and ambulance response times to life-threatening emergencies have nearly doubled. Meanwhile, roughly half of New York City public school students still can't read or do math at grade level. Despite this decline in public services, Mayor Mamdani has proposed a 2% income tax hike on millionaires and a 9.5% property tax increase as a 'last resort' to address the city's fiscal crisis.

  • In 2018, the population of New York City was roughly 8.4 million people.
  • As of 2026, the population of New York City is barely above the 2018 level, representing a less than 1% increase in 7+ years.
  • New York City government spending has increased from $85 billion in 2018 to a proposed $127 billion in 2026, a nearly 50% increase.

The players

Zohran Mamdani

The mayor of New York City who has proposed a 2% income tax hike on millionaires and a 9.5% property tax increase to address the city's fiscal crisis.

New York City

The largest city in the United States, which has seen a decline in public safety, education outcomes, and quality of life metrics despite a nearly 50% increase in government spending since 2018.

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What they’re saying

“The wealthiest individuals and most profitable corporations should contribute a little bit more so that everyone can live lives of dignity.”

— Zohran Mamdani, Mayor of New York City (schiffsovereign.com)

What’s next

Mayor Mamdani has threatened a 9.5% property tax increase as a 'last resort' if Albany does not approve his proposed wealth tax. This tax hike would impact over 3 million residential property owners in New York City.

The takeaway

New York City's fiscal crisis highlights the broader challenge facing governments across the United States, where increased spending has not translated to improved public services. Rather than address the root issue of runaway spending, politicians are often turning to tax hikes on the wealthy, which risk driving out high-income residents and businesses and ultimately forcing the middle class to bear the brunt of the tax burden.