New York Gov. Kathy Hochul is reportedly leaving the door open to tax increases, after spending months saying she would not budge on the issue.
Following the election of New York City Mayor-elect Zohran Mamdani in November, Hochul has found herself in an altered political landscape, forcing the more moderate Democrat incumbent to address the tax-the-rich demands that have surged in the wake of the democratic socialist's victory.
Hochul is running for reelection next year, and her next moves in Albany will determine not only her own political future, but also that of congressional battlegrounds in her state that could potentially flip control of the House. Raising the corporate tax rate — as she has edged toward since Mamdani's win — risks alienating business allies, while standing firmly against tax hikes could needle the far-left wing of her party.
Her challengers have already begun to seize on Hochul's difficult position.
"New Yorkers deserve leadership guided by conviction and courage — not by whatever is politically easiest at the moment," Lt. Gov. Antonio Delgado said, according to Politico.
Delgado, who is reportedly estranged from Hochul, is mounting a longshot bid to wrest the Democrat gubernatorial nomination away from her in the primary.
New York's political climate is growing increasingly fraught as voters, already stretched thin by soaring prices, show little patience for leaders who appear out of touch with everyday economic pressures.
Residents across the state continue to struggle with higher costs for groceries, rent, transportation, and child care — realities that helped propel Mamdani into office and that could reshape critical suburban races next year.
Hochul, who has repeatedly shifted her political approach to meet changing winds in Albany, now faces a challenge far more consequential than a routine budget dispute. Her stance on taxes will heavily influence her standing within the Democratic Party and could determine the outlook for down-ballot Democrats heading into 2026.
Her advisers insist she can adapt without abandoning her core beliefs.
"Gov. Hochul bases every decision on what's best for New Yorkers," spokesperson Jen Goodman told Politico, arguing that Hochul listens to families, responds to their concerns, and delivers "pragmatic, results-driven solutions" aimed at making the state safer and more affordable.
Progressives, however, continue pushing for tax hikes on high-income earners and large corporations — proposals that polls show are broadly popular statewide.
Fueled by frustration with the city's high cost of living, Mamdani's election has intensified pressure on Hochul to reconsider her approach. A clumsy policy shift risks feeding doubts about her consistency, something that can be politically damaging at a time when voters increasingly reward authenticity.
Hochul, for now, is standing firm on one major point: She refuses to raise personal income taxes.
"I'm not raising income taxes," she told Fox 5 on Wednesday, arguing that New York must remain affordable and competitive, and that successful individuals should continue investing and creating jobs in the state.
But beyond income taxes, Hochul signaled that virtually every other revenue option remains under review.
"We have to look at other revenue sources," she said, noting that federal funding cuts and policy decisions in Washington have left the state facing significant financial pressures.
Newsmax Wires contributed to this report.
Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.
© 2025 Newsmax. All rights reserved.