A new tax proposal backed by New York City Mayor Zohran Mamdani is drawing sharp criticism from lawmakers who say it could hit middle-class families far harder than the “tax the rich” slogan suggests.
Under the plan, Mamdani is pushing to dramatically lower New York’s estate tax exemption to what would reportedly become the lowest threshold in the United States. At the same time, the proposal would raise the top estate tax rate to 50%—a massive jump from the current 16%.
According to reports, the mayor believes the combined changes could raise roughly $4 billion in revenue.
Critics, however, argue the policy could put financial pressure on ordinary homeowners rather than ultra-wealthy individuals.
Michael Tannousis, a Republican assemblyman representing Staten Island, blasted the proposal, saying it reflects how the “tax the rich” movement often ends up targeting the middle class.
“This is a prime example of how the ‘tax the rich’ movement is actually all about taxing the middle class and those struggling to put food on their tables for their families,” Tannousis told the New York Post.
He also pointed out how quickly property values can push families over the proposed threshold.
“What can you buy in New York City for $750,000? Not much at all,” he added.
Even some Democrats are raising concerns about the potential impact.
Phil Wong, a City Council member from Queens, warned that lowering the estate tax exemption could affect far more families than supporters of the plan may realize.
“With property values where they are today, families could be forced to sell the very homes they hoped to pass on to their children,” Wong said. “Government cannot keep piling on taxes that punish middle-class homeowners.”
The proposal comes as Mamdani has been urging state leaders, including New York Governor Kathy Hochul, to help address what city officials say is a $5.4 billion budget deficit for the fiscal year beginning July 1.
According to sources, a policy memo outlining the tax changes has been circulating among lawmakers and officials in the governor’s office over the past two weeks.
The document also highlights other priorities from the mayor, including a proposal to increase personal income taxes by 2% for New Yorkers earning more than $1 million annually. Mamdani estimates that change alone could generate around $3 billion in additional revenue.
Supporters of the plan say the measures are necessary to stabilize the city’s finances. Critics counter that steep tax hikes risk pushing families and businesses out of the state altogether.
And in a city already known for some of the highest taxes in the country, many residents are wondering how much more government can take before the middle class decides enough is enough.
