DSA warns Gov. Kathy Hochul over ‘third strike’ as worried NY Dems embrace Zohran Mamdani’s tax hikes

Kat’s Between a Bloc and a Hard Place: Hochul Faces Pressure Over Tax Hikes

Gov. Kathy Hochul is already feeling the heat ahead of her re-election campaign, as liberal politicians and activists warned Sunday that she must support Mayor-elect Zohran Mamdani’s tax hike proposals—or risk getting voted out of office.

The Democratic Socialists of America (DSA), newly empowered and gaining mainstream influence following Mamdani’s victory in the mayoral election this month, held a “Tax the Rich” rally in Union Square Sunday. Democratic state lawmakers are warming to the idea of tax increases, concerned they could face primaries and the wrath of liberal voters in next year’s elections.

Brooklyn State Sen. Jibari Brisport, a DSA member, told the crowd that he had twice tried to work with Hochul on universal childcare legislation, only to be rebuffed. “Kathy Hochul, if you get a third strike, you’re out!” Brisport said to cheers and applause. He went on to declare, “There’s no way to get universal child care without raising taxes on the rich,” insisting that Hochul must cooperate. Brisport warned, “So if she [Hochul] does sabotage it and blocks it then I think the plan is that she has to go.”

A Progressive Agenda Gains Momentum

Mamdani is pushing for the state government to increase taxes on the wealthy and raise the corporate tax rate to pay for his agenda, which includes free universal child care, free bus service, and increased housing construction. Although Hochul endorsed Mamdani in the general election, she has pledged to hold the line on taxes—a stance that immediately puts her at odds with the mayor-elect and his energized supporters.

Political insiders have noted that Hochul herself helped fuel the rise of the party’s left wing by supporting Mamdani, potentially opening the door for DSA-backed challenges against any lawmakers who fail to support their ambitious policy goals.

DSA Sets the Tone, State Lawmakers Act

DSA co-chair Gustavo Gordillo opened the rally by declaring that Mamdani’s win provides a mandate for a tax increase. “The corporate press and the political establishment tell us it won’t be possible to tax the rich. They’re saying Governor Hochul is opposed to raising taxes,” Gordillo said. “Well, Governor Hochul, 12 days ago [on Election Day], over 1 million voters in New York made it very clear what we want.”

State lawmakers are already moving on the tax plan, weeks before Mamdani takes office. State Sen. John Liu (D-Queens) and Assemblywoman Phara Souffrant Forrest (D-Brooklyn) have introduced a bill that would allow the city to impose a 2% surcharge on New Yorkers’ incomes over $1 million. For example, an individual making $1.5 million would only pay a surcharge on the $500,000 above the threshold. They claim the surcharge could bring in up to $4 billion a year.

The revenue would be used to expand healthcare, affordable housing, universal child care, transit improvements, safe streets, and other essential needs. “New Yorkers are insufferably squeezed by stagnant wages and escalating costs, a crisis that is only getting worse with new federal policies designed to benefit the wealthiest and punish working people,” said Liu, a Mamdani ally. He added, “It is entirely fair and appropriate to ask the highest income people, who just got a 2.6% tax cut from Donald Trump, to support a 2% increase in order for New York to generate the revenue needed to strengthen our economy and not leave working New Yorkers behind.”

Liu’s spokesman, Scott Sieber, said the senator introduced the millionaires’ tax bill after discussions with other lawmakers and “fully expects bill cosponsors as the legislative session opens in January.”

Albany Power Players Line Up

State Sen. Mike Gianaris (D-Queens), deputy majority leader and the second most powerful lawmaker in the state, told The Post he plans to use his influence to get Albany to back Mamdani’s programs. Gianaris and Mamdani, who have overlapping districts in western Queens, previously teamed up to allocate $15 million in state funds for experimental free bus service.

Addressing the $800 million cost to make bus service free citywide, Gianaris said, “We do programs of that size every year in the budget.” He also noted that Senate Democrats have already pushed bills for subsidized child care. “I’m 100 percent going to push for this,” Gianaris stated, calling financing for universal child care and free buses “important and necessary.”

Hochul Holds Out—For Now

Hochul, the most powerful player in state budget negotiations, reiterated her opposition to raising income taxes or diverting MTA funds to subsidize bus fares as she faces re-election next year, likely against upstate Republican Rep. Elise Stefanik. The governor also opposes raising the corporate tax rate from 7.3% to Mamdani’s proposed 11%, which would move New York from 17th to tied for first with New Jersey among U.S. states, according to sources close to Hochul. However, she hasn’t taken a corporate tax hike completely off the table if the state needs to close a multi-billion dollar budget gap.

Business Community Pushes Back

As Hochul seeks to navigate pressure from the left, the business community is pushing back hard against any move to raise corporate taxes—a proposal sure to be an election issue. Jersey City Mayor Steven Fulop, the incoming CEO of the influential Partnership of the City of New York, said boosting the state’s business tax rate would be “absolute suicide.”

“This proposal is absolute suicide for NYC and an absolute dream for NJ,” Fulop said, noting that New York City businesses already pay other taxes that would push their overall rates as high as 16%.

With tax proposals dividing Democrats and energizing progressives, Hochul faces tough choices as she tries to hold her coalition together ahead of a contentious and high-stakes election season.
https://nypost.com/2025/11/16/us-news/liberals-put-kathy-hochul-on-hot-seat-as-worried-dems-embrace-zohran-mamdanis-tax-hikes/

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