Jihad-loving socialist New York Mayor Zohran Mamdani has a horrible plan to make up for the catastrophic budget deficit in his near-bankrupt city: order the state government to impose a wealth tax, or expect spiked property taxes.
Mamdani has issued an “ultimatum” to the New York state government, where he demanded that they destroy the state’s economy still further with a wealth tax or expect a “last resort" 9.5% property tax hike. The Democrat mayors of previous years have created a $5.4 billion deficit, and Mamdani just plans to make it worse, so of course, he’s looking for more excuses to steal money. And real estate experts are about as enthusiastic about the plan as you might expect.
Douglas Elliman’s Ben Jacobs criticized Mamdani in comments to Fox, “Even the discussion of a 9.5% hike is enough to influence buyer behavior and cause irritations in the market. Some buyers have considered Nassau, Westchester, Long Island, and even Florida or Texas as alternatives because they just don't agree with [NYC] politics.”
He cautioned further: “Higher corporate and wealth taxes can trigger a chain reaction. Reduced investment and relocation of high earners shrink the city’s tax base, which often indirectly affects middle-class households. Even if they aren’t the direct target, over time these economic ripples can influence affordability, property values and access to services.”
Democrats always ignore such evidence as the Laffer curve, which illustrates that if you raise taxes too high, eventually, you will actually end up losing money. This is what Mamdani is going to do. In desperately trying to steal more and more money from successful New Yorkers, he will simply cause them to leave the state.
Jacobs’s fellow Douglas Elliman expert Michelle Griffith was equally pessimistic. “The mention of a 9.5% hike can pause decision-making, especially for those weighing options in the suburbs or out-of-state markets. We’re already seeing clients seriously evaluate alternatives in Nassau, Westchester and beyond, factoring taxes heavily into affordability calculations,” she said.
Recommended: Hockey Olympian Who Scored Winning Shot Is Proud to Be American
Griffith has seen such an effect already that she warned emphatically, “In some negotiations, this ‘Mamdani Effect’ is tangible, slowing deals or prompting buyers to consider properties outside NYC.”
In fact, Democrat-run California recently lost multiple billionaires and businesses with just the threat of a wealth tax. But if there’s one thing that defines socialists like Mamdani, it’s a pig-headed refusal to acknowledge the evidence of experience and history.
Mamdani whined about “fiscal mismanagement” on X Tuesday, but he did not, of course, propose to cut unaffordable welfare programs or aid for illegal aliens. No, naturally, reform cannot mean actually cutting overspending; he must needs redistribute wealth more. “Albany can raise taxes on the ultra-wealthy and the most profitable corporations and address the fiscal imbalance between our city and state,” he ranted. The imbalance was really caused by government overreach and leftist overspending, and it will not be solved using the same tools.
As is typical with socialists, Mamdani made promises that he cannot deliver and is blaming everyone else for it. Griffith explained the reality, “In many cases, property tax increases are eventually absorbed by tenants, particularly in rent-stabilized or market-rate units where landlords factor operating costs into pricing. While the Mayor’s promise of 'rent stability' is admirable, history shows that higher property taxes can translate into incremental rent increases fairly quickly, sometimes within a year. Working families may end up feeling the impact, even if it’s not immediate.” No kidding.
Editor’s Note: Support and follow PJ Media’s coverage of Democrat lies and other key news in this midterm election year. Join PJ Media VIP and use promo code FIGHT to get 60% off your membership.
Join the conversation as a VIP Member