You have likely heard the refrain that when America sneezes, the rest of the world catches a cold. America is so central to world economic health, not to mention pol-mil order, that every nation is downstream from her decisions. And in no case are the stakes greater than in New York City — a city whose economy is bigger than most nations — where Assembly Member Zohran Mamdani’s potential rise to power in the complicated four-way race is a call for national alarm.

If elected, he plans to raise $10 billion through punitive taxes on corporations and millionaires to fund universal childcare, free buses, and rent freezes to alleviate genuine pain points for New Yorkers already struggling under decades of “progressive” policies. The only thing more astonishing than his communist plans are that enough New Yorkers carried him to a primary victory. (RELATED: Mamdani’s Radical Platform Shakes Up Midterm Stakes)

However, even if his intentions are good, the economic outcomes will not be. Mamdani’s tax-heavy approach risks creating a dangerous cycle: higher taxes drive away businesses and wealthy residents, shrinking the tax base and requiring even higher rates to fund the same services. In a city already hemorrhaging residents and businesses, this strategy could backfire spectacularly.

Mamdani’s proposal to slap a 2 percent income tax on New Yorkers earning over $1 million would generate $4 billion annually — if those millionaires stick around. But unlike Massachusetts, which Mamdani cites as a success story, New York faces direct competition from states with zero income tax.

Florida, Texas, and Tennessee don’t just offer sunshine and barbecue — they offer something New York can’t match: no state income tax. Add Mamdani’s 2 percent city tax to New York’s existing 10.9 percent state rate, and high earners would face a combined rate approaching 14 percent. That’s not just a tax increase; it’s a relocation incentive program for neighbors to the south.

The math is stark: losing just 10 percent of millionaire taxpayers would wipe out $400 million in expected revenue. And these aren’t just tax numbers — they’re people who start businesses, employ others, and support local services.

Mamdani also wants to raise New York’s corporate tax rate to match New Jersey’s 11.5 percent, generating $5 billion annually. But this comparison misses the forest for the trees. Companies don’t just look at tax rates — they consider the total cost of doing business, including regulations, real estate costs, and workforce availability. (RELATED: Mamdani Markets Envy to Sell a Marxist Utopia)

New York already struggles with these costs. Adding a 58 percent corporate tax increase (from 7.25 percent to 11.5 percent) could be the final straw for businesses already questioning their commitment to the city. Unlike individuals, corporations can more easily relocate operations, and they’re increasingly willing to do so — which will be a boon for business-friendly red states.

Remember, corporate tax revenues are notoriously volatile. Betting $5 billion in annual spending on this unstable revenue source is fiscal recklessness disguised as progressive policy.

While everyone’s talking about his bonkers grocery store gambit, this plan is far crazier.

Mamdani’s promise to “freeze the rent” sounds like immediate relief for tenants, but rent control has a long history of unintended consequences. When landlords can’t raise rents to cover maintenance costs, they defer upkeep, leading to deteriorating housing stock. When they can’t earn reasonable returns, they convert apartments to condos or offices, reducing the rental supply. (RELATED: New Yorkers: Stand and Fight Mamdani)

San Francisco and other cities with strict rent control have seen exactly this pattern: protected tenants benefit in the short term, but housing quality declines, and new renters face even higher costs due to reduced supply. New York’s own experience with rent control in the mid-20th century led to widespread housing deterioration and abandonment.

None of this means New York should ignore its affordability crisis. But sustainable solutions require growing the economic pie, not just redistributing existing slices.

Instead of punitive tax increases, New York should focus on making itself more attractive to businesses and residents. This means streamlining regulations, improving infrastructure, and creating incentives for private investment in housing and job creation.

The goal should be creating an economy so dynamic and attractive that businesses and high earners want to stay, even while paying reasonable taxes to support quality public services.

New York City has weathered many challenges, from crime waves to fiscal crisis to terrorist attacks to insane “pandemic” lockdowns. It has survived because it stuck to the American institutions that made it the world’s wealthiest city.

Mamdani might as well start holding small business burnings for rallies when the weather turns cold. These radical policies risk transforming New York into one giant DMV station — a place where every interaction with essential services becomes a bureaucratic nightmare. Electing Mamdani would do more economic damage than 9/11 and Bin Laden. In fact, his plans are so obviously disastrous, they seem like sabotage. New Yorkers must reject him!

Jared Whitley is a longtime politico who has worked in the US Senate, White House, and the defense industry. He has an MBA from Hult Business School in Dubai, and in 2024, he won the Top of the Rockies best columnist award.

David Hursey is an Economic Development Director in North Carolina. He has worked on Capitol Hill in Washington, D.C., and several presidential and congressional campaigns.

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