Affluent New Yorkers Rally Behind NYC Mayor's Wealth Tax to Fund Universal Services

New York City's new socialist mayor, Zohran Mamdani, has ignited a firestorm of debate with his pledge to tax the wealthy and corporations. His plan targets individuals earning $1 million annually and businesses raking in $5 million, aiming to fund universal childcare, free public transit, and housing projects. While many wealthy residents oppose the proposal, a surprising group of affluent New Yorkers is rallying behind it — and urging lawmakers to act quickly.

These supporters, including lawyers, philanthropists, and business executives, argue that the tax hike is not only fair but necessary. Craig Kaplan, a Manhattan-based attorney and member of the Patriotic Millionaires group, has lobbied Governor Kathy Hochul to approve the measure. 'There is such a need in our city for the kind of programs Mamdani is talking about,' Kaplan told The New York Times. He insists that a $20,000 tax increase would not deter the wealthy from staying in the city. 'It would mean absolutely nothing for me,' he said, adding that his income far exceeds the threshold.

Marissa Hersh, a philanthropic advisor to the Movement Voter Project, shares Kaplan's stance. Though she comes from a wealthy family, she earns less than $1 million annually and sees no harm in paying higher taxes. 'We use the parks, the libraries, and public 3-K. We can afford to pay higher taxes,' she said. Hersh supports the mayor's plan to create city-owned grocery stores, which she believes will prioritize affordability over profit.

Marc Baum, another lawyer and Patriotic Millionaires member, lives a modest life despite his wealth. He drives a 2013 car, owns a decades-old brownstone, and spends summers in Adirondack shacks. 'Would I give less to charity? I don't think so,' he said. His group includes other high-profile figures, such as Abigail Disney and Morris Pearl, who back the tax proposal as a way to address inequality.

Not all wealthy residents are on board. John Catsimatidis, a billionaire CEO of Gristedes and D'Agostino Supermarkets, calls the plan 'a stupid move' that could drive New Yorkers away. He jokes that New York politicians are the best real estate brokers in Florida, luring millionaires with promises of a better life. Still, he admits he would personally survive the tax increase. 'I'm going to run out of time before I run out of money,' he said.

Despite fears of a mass exodus, a Cornell University report suggests that millionaires are unlikely to flee the city. The study notes that millionaires have historically low migration rates, with the last significant exodus occurring during the pandemic. Henley & Partners' latest data confirms that New York remains a magnet for the wealthy, home to nearly 400,000 millionaires. 'The first fact is simple: Millionaires have low migration rates,' the report states.

The financial stakes are high. If Mamdani's plan passes, it could reshape the city's economy, potentially reducing the tax burden on middle-class residents and boosting public services. But critics warn that the proposal might deter investment and trigger a brain drain. As the debate intensifies, one thing is clear: the city's future hinges on whether the wealthy will stay — or if the promise of higher taxes will finally push them to leave.

Andrew Tobias, a Patriotic Millionaires member, quipped that the mayor should 'send a fruit basket' to wealthy New Yorkers who pay more. He acknowledged that some individuals might struggle, especially those with high private school tuition or expensive second homes. 'There might be someone who has to sacrifice something,' he said. Yet, for others, the tax hike is a small price to pay for a city they believe can be made fairer — and more prosperous — for all.

The mayor's office has yet to reveal specifics on how the tax revenue will be distributed beyond universal childcare and transit. But supporters argue that the money will be used to build affordable housing, expand healthcare access, and reduce the city's reliance on private corporations. 'The plans to spend the money are totally productive and serve the whole society,' Kaplan insisted. As the push for higher taxes gains momentum, the question remains: will the city's wealthy finally rise to the challenge — or will they walk away?