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Posted on 04/03/2026 9:21:55 AM PDT by Libloather
Mayor Zohran Mamdani’s plan to tax his way out of the Big Apple’s self-imposed fiscal crisis is facing a fresh and little-discussed threat, according to well-placed financiers – and it’s coming from artificial intelligence.
As I reported earlier this week, investors lately have begun to shun city debt – either selling it in the secondary market or balking at buying its newly issued bonds – over concerns that Mamdani’s numbers aren’t adding up.
The worry is that his $127 billion budget still faces a $5.4 billion deficit and that his solutions – like raising taxes on anyone who works – will make the situation even worse by forcing more people to leave New York City, already one of the highest taxed locales in the country.
Even if Mamdani does manage to balance his upcoming fiscal 2027 budget, some prospective investors in the city’s current and future debt note that he’s got at least three more years of budget to balance, and there will likely be less of a population to tax.
While a stampede of high earners to lower-tax venues down south like Florida continues to be a major concern, there’s another, less-talked-about issue that’s worrying investors in the city’s municipal bonds: the threat of AI job elimination.
Richard Farley is a veteran corporate finance lawyer for Herbert Smith Freehills Kramer, and author of a terrific book published last year on the New York City’s financial crisis of the 1970s: “Drop Dead: How a Coterie of Corrupt Politicians, Bankers, Lawyers, Spinmeisters, and Mobsters Bankrupted New York, Got Bailed Out, Blamed the President, and Went Back to Business as Usual (And It Might Be Happening Again).”
Farley says AI job losses in software development, financial services and legal services will only accelerate, and those industries “account for a huge percentage of...
(Excerpt) Read more at nypost.com ...
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How does a socialist balance his budget? Tough position he’s in.....
Apparently there are issues with trying to get certain tax increases in NYC, as some need to be approved by the state legislature in Albany.
Since he doesn’t have absolute power to rule by decree, his job is tougher than it would be otherwise.
Madmani to AI: Hey, AI. How can I instill a jizya tax without the legislature?
Gonna be awesome.
Even Microsoft says don’t trust anything Important to AI ,LOL
It’s going to be interesting to see cities like NYC become a version of “rust belt” as once mighty cities fall due to their poor voting choices.
Wait..what?
Texas is threatening New York?
What?
I do wish people would stop pretending Mamdani is in that spot to help New York City. In any way.
NY State is on the precipice
Its largest source of income, the income tax - 40% of tax is paid by 1% of taxpayers
Its second largest source of income, the Federal Government, is already $40 trillion in debt and facing rising interest rates
NY City budget ($115 billion) is same as the entire state of Florida ($117 billion), but with less than 1/3 the people
NY State’s medicaid spending is more than TWICE per capita the next highest state.
NY is a one-party state, dominated by woke government, with a constantly declining population. It attempts to boost that (and thus maintain federal money) with migrants, who generally pay no taxes and only consume services.
NY State deserves to crash, and hard. It will never reform itself otherwise.
NYC is lacking the leadership to offset their decline into disaster. The Federal Gov’t is keeping NY afloat.
Turns out that "helping the puur" is very expensive.
There is probably enough waste, fraud and abuse in any budget that Mayor Madmani produces to more than make up for the shortfall. But that would involve applying well-tested accounting methods, and good management practices to administration of the public trust, that are sadly lacking, and probably beyond the comprehension of the crew he has working on this enterprise.
They could not find their backsides using both hands.
“NYC is lacking the leadership to offset their decline into disaster.”
Don’t kid yourself Mamdani intends to lead NYC in its decline into disaster.
F’ NY
Don’y worry, AI taxes are coming.
Liberals are going to end up taxing AI work on the premise it has replaced a human worker and adds the same value, they will assess AI as to the value it adds to the company and tax it accordingly.
I see an AI VAT in the future.
<>The worry is that his $127 billion budget . . . <>
The 2025 budget for the state of Florida was $117 billion.
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