Mamdani proposes wealth tax to close NYC’s deficit: Here’s who it affects

NEW YORK - New York City Mayor Zohran Mamdani is calling for a wealth tax on the city’s richest residents.

Taxing the wealthiest residents

What we know:

Mamdani said Wednesday that the city faces a budget hole of more than $12 billion.

Speaking to CNBC’s Squawk Box, Mamdani argued that the city’s wealthiest must pay more to help stabilize city finances and protect public services, according to CNBC.

The mayor blamed the shortfall on decisions made by former Mayor Eric Adams and former Gov. Andrew Cuomo, whom Mamdani defeated in the November general election. 

Earlier this month, City Comptroller Mark Levine said the city is projected to face a $12.6 billion budget gap over the next two fiscal years, including a $2.2 billion deficit in fiscal 2026 and a $10.4 billion gap in fiscal 2027, CNBC reported.

Mamdani said his plan to address the deficit includes both raising revenue and cutting wasteful spending. He pointed to a "basically unusable" artificial intelligence chatbot launched under the Adams administration that reportedly cost about $600,000 to develop. 

Allegations against Adams

The other side:

A spokesperson for former Mayor Eric Adams provided this statement in response:

"Mayor Eric Adams inherited a city facing nearly $10 billion in debt, compounded by the worst public-health and economic crisis in New York City history. COVID devastated the economy, and the City was later forced to absorb billions in migrant-related costs that should not have fallen solely on local taxpayers.

Despite these challenges, Mayor Adams led a real recovery through steady leadership and tough decisions. Blaming him for decades-old City–State funding inequities is inaccurate and disingenuous."