We’ll All Pay for New York’s Mamdani Folly

The state will lose wealthy taxpayers, and the federal government will have to cough up more aid

By Bennett Nuss. He is an associate with the National Center for Public Policy Research. Excerpts:

"Upstate New York has stagnated economically for nearly two decades. Businesses are leaving, driven away by regulatory and tax burdens imposed by Albany. Buffalo, a midsize city, has been unable to provide enough competitively paying jobs to maintain the economic status quo. Younger people are fleeing the state to look for work in parts of the country with more opportunity and a lower cost of living. As New York state’s average population ages, government’s ability to provide state-run services such as Medicaid—and even low-cost electricity—has deteriorated. The young workers who once supported their community’s amenities have taken their important tax dollars elsewhere."

"Freezing rents eliminates the rationale for owning a leasable apartment, and the property-tax burden would still fall on real estate holders, making every investment a value loss. Further, freezing rents would undermine the rest of Mr. Mamdani’s agenda. If landlords are losing money, the city budget will suffer from reduced revenue from income-tax collections."

"Mr. Mamdani has proposed an additional 2% income tax on New Yorkers making more than $1 million a year. A family making that much is now effectively paying a combined total income tax rate of approximately 44%"

"The city pays for most of the services Albany provides."

"If wealthy New Yorkers flee for sunnier climes, the city will need even more federal dollars to stay afloat."