New York City Mayor Zohran Mamdani claimed on Wednesday that threats of the city's wealthiest residents leaving the city over high taxes were "imagined."

New York State Governor Kathy Hochul proposed on Wednesday a ​new tax on second homes worth over $5 million that was ‌backed by New York Mayor Zohran Mamdani.

The move is intended to address the city’s estimated $5.4 billion budget deficit, which Mayor Zohran Mamdani is trying to solve with tax hikes for high earners and spending cuts.