Tax Fight Will Test Mamdani's Influence Against Hochul in Albany

Democratic state lawmakers back higher taxes on wealthy, but Hochul opposes increases amid concerns over competitiveness.

Published on Mar. 11, 2026

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A tax fight is brewing in Albany as Democratic state lawmakers, backed by New York City Mayor Mamdani, push for higher taxes on the wealthy and corporations. However, Governor Hochul, who is running for re-election, has steadfastly opposed tax increases, citing concerns over the state's competitiveness and affordability. The coming weeks will determine whether Mamdani's influence in the state capital will be enough to achieve a victory on this signature issue.

Why it matters

The outcome of this tax battle will have significant implications for New York's economic and political landscape. Mamdani's populist platform and push for higher taxes on the wealthy are at odds with Hochul's more moderate approach, setting up a high-stakes showdown between the city's mayor and the state's governor.

The details

Democratic state lawmakers are backing higher taxes on wealthy New Yorkers and corporations, a measure favored by the left-leaning Mayor Mamdani. However, Governor Hochul, who is running for a second full term, has steadfastly opposed tax increases, citing concerns they would make the state far less competitive and undermine her push to address the state's affordability crisis. The budget is due on March 31, and the coming weeks will determine whether Mamdani's influence in Albany will be enough to achieve a victory on this signature issue.

  • The state budget is due on March 31, 2026.
  • Hochul is running for a second full term as governor this year.

The players

Eric Mamdani

The mayor of New York City, who rode a far-left populist platform to an upset election last year and is pushing for higher taxes on the wealthy and corporations.

Kathy Hochul

The governor of New York, who is running for a second full term and has steadfastly opposed tax increases, citing concerns over the state's competitiveness and affordability.

Rob Ortt

The Republican Senate Minority Leader, who has said the budget battle will come down to who has more influence in Albany - the mayor of New York or the governor of New York.

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What they’re saying

“There are a lot of friends and fellow travelers in the Senate Dems and the Assembly Dems who do share a vision with the mayor. This budget is going to come down to who has more influence in Albany — the mayor of New York or the governor of New York?”

— Rob Ortt, Republican Senate Minority Leader (Politico)

“Let's focus on getting the budget done. I'm going to be smart about this budget and continue to address the affordability crisis.”

— Kathy Hochul, Governor of New York (Politico)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This tax battle highlights the growing divide between the progressive policies championed by Mayor Mamdani and the more moderate approach of Governor Hochul. The outcome will have significant implications for New York's economic and political landscape, as well as the balance of power between the city and state governments.