Mayor Zohran Mamdani proposes a 5.88% income tax rate for households earning over $1 million annually, sparking a heated debate among New York’s elite. Patriotic Millionaires members, including lawyer Craig Kaplan and heir Abigail Disney, publicly endorse the plan, arguing it funds critical services like universal childcare. Kaplan, a Democratic donor, emphasizes that wealthy residents like himself should contribute more, stating, “There is such a need in our city for programs that serve the whole society.”

The proposal faces fierce opposition. Governor Kathy Hochul, who earned $1.5 million in 2024, rejects tax hikes, calling them “never-ending searches for higher revenue.” Billionaire John Catsimatidis warns the plan could drive residents and businesses away, while Republican lawmakers label Democrats “out of control.” Yet polls show 63% of NYC residents support taxing millionaires, and research suggests wealthy New Yorkers are unlikely to flee over a $20,000 tax increase, as Kaplan noted: “It would mean absolutely nothing for me.”

Critics argue New York’s high taxes already strain competitiveness. Steven Fulop of the Partnership for New York City warns that losing top earners could create fiscal pressure. However, Patriotic Millionaires counter that inequality—highlighted by NYC’s status as the nation’s most unequal major city—demands action. Marissa Hersh, a Patriotic Millionaires member, supports city-owned grocery stores funded by the levy, calling it a step toward equity.

The clash reflects broader national tensions. California and Washington state are also considering billionaire taxes amid growing populist pressure. For now, Mamdani’s plan hinges on Hochul’s reluctance to alienate donors ahead of her re-election. As Kaplan puts it, the fight isn’t about wealth, but “who gets to decide how society’s resources are distributed.”