Albany's Tax Hike Kabuki Theater Leaves New Yorkers Losing Out

Governor, Legislature leaders, and NYC mayor clash over tax increases

Published on Mar. 5, 2026

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Even with Governor Kathy Hochul vowing to avoid tax hikes before the November election, the New York State Legislature's leaders and progressive lawmakers are determined to push for higher taxes on the wealthy and corporations. Meanwhile, New York City Mayor Zohran Mamdani is calling for property tax hikes and higher top income tax rates. However, these tax increase proposals are likely to only exacerbate the state's "affordability crisis" as residents and businesses flee to other states.

Why it matters

The battle over tax hikes in Albany highlights the ongoing political divide between moderate and progressive Democrats in New York. While the governor wants to avoid tax increases to boost her re-election chances, the Legislature's leaders and left-wing lawmakers are pushing aggressively for higher taxes on the wealthy and corporations. This tug-of-war could have significant consequences for New Yorkers, potentially driving more residents and businesses out of the state.

The details

Assembly Speaker Carl Heastie and state Senate Majority Leader Andrea Stewart-Cousins plan to include tax-the-rich "revenue raisers" in their one-house budgets, approximating Mayor Mamdani's calls for higher top income tax rates and increased corporate taxes. Mamdani also wants to hike New York City property taxes by nearly 10% if Albany doesn't agree to raise the top combined income tax rate in the city to 22.48%. Meanwhile, two progressive state lawmakers have introduced a bill to give Mamdani the power to impose a 25% surcharge on city corporate taxes.

  • The New York State Legislature is currently debating the state budget, with a deadline of April 1, 2026.
  • The New York gubernatorial election is scheduled for November 2026.

The players

Kathy Hochul

The current Governor of New York, who has vowed to avoid any tax hikes before the November 2026 election.

Carl Heastie

The Speaker of the New York State Assembly, who plans to include tax-the-rich "revenue raisers" in the Assembly's one-house budget.

Andrea Stewart-Cousins

The Majority Leader of the New York State Senate, who also plans to include tax-the-rich "revenue raisers" in the Senate's one-house budget.

Zohran Mamdani

The Mayor of New York City, who is calling for higher top income tax rates and increased property taxes in the city.

Diana Moreno

A New York State Assemblywoman who has introduced a bill to give the New York City mayor the power to hike city corporate taxes with a 25% surcharge.

Kristen Gonzalez

A New York State Senator who has introduced a bill to give the New York City mayor the power to hike city corporate taxes with a 25% surcharge.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The New York State Legislature will continue to negotiate the state budget, with a final budget due by April 1, 2026. The outcome of these budget negotiations will determine whether any tax increases are ultimately enacted.

The takeaway

The battle over tax hikes in Albany highlights the ongoing political tensions between moderate and progressive Democrats in New York. While the governor wants to avoid tax increases to boost her re-election chances, the Legislature's leaders and left-wing lawmakers are pushing aggressively for higher taxes on the wealthy and corporations. This tug-of-war could have significant consequences for New Yorkers, potentially driving more residents and businesses out of the state.