Not even two months have passed since he became the first socialist and Muslim mayor in New York City history, and he is already facing a series of challenges that call into question much of his agenda.
Deficit and pre-election commitments
The most pressing problem he has to deal with concerns the budget deficit of the American metropolis, estimated at $12 billion over the next two years (two in the current fiscal year and ten in the next). Mamdani, in a press conference on Tuesday (17/02) claimed that the 5.4 billion has been covered. He acknowledged, however, that the problem still exists and if not effectively tamed, he cancels his pre-election pledges to boldly expand social services (free bus transportation, construction of housing for low-income households, expansion of free childcare, etc.).
Raising taxes on the wealthiest New Yorkers
The solution the mayor favors is to increase the tax rate by 2% on New Yorkers with an annual income of more than one million dollars and the corporate tax rate by 4.25% (from 7.25% to 11.5%), with his staff counting on total benefits of nine billion dollars.
High risk move
Such a choice, however, is strongly opposed by the governor of the state, Kathy Hokul, whose approval is required – together with the state Congress – to ratify the specific proposals. That’s because Hokul, who is seeking re-election in November’s midterm elections, maintains a solid poll lead over Republican Bruce Blakeman, but not wide enough to support what is considered a high-risk move.
The first test Madmani
Mamdani is responding to this refusal by raising property taxes by 9.5%, a measure estimated to affect three million housing units and 100,000 businesses. “We don’t want to resort to such drastic measures to balance our budget,” said the 34-year-old Mamdani, adding however: “However, if we find ourselves with no other choice, we will.”
This is the first real test for Mamdani, who until the end of January was being hailed by pro-business and conservative media. For example, the Washington Post questioned whether the new mayor is an advocate of strict fiscal discipline (fiscal hawk).
Likewise, his decision to establish a special business initiative zone for the Coney Island area, boosting small businesses with a million in capital, was applauded by the business community and a portion of the media.
Mayor-governor conflict
Returning to today’s stakes, the conflict between New York’s mayor and governor has been described as a symptom of the conflict within the Democratic Party, between the traditional centrist establishment and the younger generation of radicalized politicians who are more friendly to terms like “progressive” or “socialist.”
How the bra de fer between mayor and governor – who until recently maintained excellent relations – will develop is a first test of this coexistence.
Is Mamdani’s political program sustainable?
Still others focus on the sustainability of Mamdani’s political program and emphasize that New York does not have a revenue problem but an expenditure problem.
“Hitting the wealthiest New Yorkers is a move capable of generating short-term fiscal revenue but in the long-term it will unpredictably disrupt revenue,” the Washington Post points out, recalling the flight of billionaires from California since the imposition of a wealth tax was proposed.
Far right sarcasm
“The budget will be the first time Mamdani’s election campaign will face math,” notes the center-right City Journal, warning in a sarcastic tone about the limits of the power of the first citizen of the “city that never sleeps.”
