Mamdani says tax hike is needed to stop 'fiscal crisis.' Critics aren't buying it.

"After a campaign that won in large part by celebrating New York City, Mamdani's $127 billion preliminary budget proposal amounted to a jarring shift in rhetoric. The city, he said, is in a "fiscal crisis" that leaves only two options: State lawmakers must raise taxes on the rich and corporations, or Mamdani will ask the City Council to hike property taxes by 9.5%. But critics weren't buying it."

""It is a false choice," said Andrew Rein, head of the fiscally moderate Citizens Budget Commission, "because it left out the most important option, which is to reduce spending that doesn't improve people's lives." Another veteran budget watcher took a more cynical view. "It's a way to freak everybody out and make it look like the income tax increase is reasonable compared to this," said Carol Kellermann, the previous Citizens Budget Commission president."

"Since last month, Mamdani has been sounding the alarm about the state of the city's fiscal health. Watchdogs say Mamdani's proposal reflects more political gamesmanship than honest accounting as he tries to keep pressure on Gov. Kathy Hochul and the state Legislature to tax the rich. Critics also say Mamdani's either-or approach risks other unintended consequences - including alienating homeowners of color, who he has said have been unfairly penalized under a "broken property tax system.""

Mayor Zohran Mamdani proposed a $127 billion preliminary budget and threatened a 9.5% property tax increase to address a multibillion-dollar fiscal shortfall. He presented the choice as either higher state taxes on the wealthy and corporations or a city property tax hike. Budget watchdogs labeled the framing a false choice and urged spending reductions instead, accusing the proposal of political gamesmanship to pressure state leaders. Critics warned the plan could drive some owners into foreclosure, prompt rent hikes for market-rate tenants, and alienate homeowners of color as state funds have since narrowed the gap.

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