New York City Mayor Zohran Mamdani on Wednesday defended his push to raise taxes on the city’s highest earners, arguing before state lawmakers that the soaring cost of living in the five boroughs justifies the increase.

Appearing in Albany, Mamdani was asked to explain why he is urging the state legislature to approve a 2% income tax increase for residents earning more than $1 million annually. The mayor framed the proposal as a response to the financial pressures facing the city.

“I think the why comes from the fact that we are the most expensive city in the United States,” Mamdani said, answering a question from Assembly member Amanda Septimo (D-Bronx).

“There simply isn’t enough money that we wish there could be,” he added.

Mamdani cautioned that failing to address the city’s fiscal needs could accelerate an ongoing population shift.

“If we take that approach year after year, what happens is we do see the exodus that’s happening right now for working middle-class people leave the city, leave the state, trying to find a place where their ends can be a little bit easier to meet.”

Since launching his mayoral campaign, Mamdani has advocated for multiple tax increases, including the proposed 2% hike on personal income for top earners and a 4% increase in the corporate tax rate.

After assuming office in January, he pointed to what he described as a looming multibillion-dollar budget deficit in the current and upcoming fiscal years as a key reason for seeking additional revenue.

However, that projected shortfall has narrowed considerably in recent weeks.

On Wednesday, Mamdani’s budget director, Sherif Soliman, disclosed that the previously cited $12 billion deficit estimate did not factor in $7.2 billion in tax revenue collected at the close of the year.

Gov. Kathy Hochul has consistently resisted calls to raise state income taxes, maintaining that New York already ranks among the highest-taxed states in the nation.