NYC Mayor Mamdani’s latest pitch to tax the rich “not happening,” Gov. Kathy Hochul says.

The budget battle between New York City and New York state lawmakers is intensifying.

New York City Mayor Zohran Mamdani and City Council Speaker Julie Menin are calling for a new way to tax the rich. They want the state to reduce something called the Pass-Through Equity Tax credit, aka PTET.

“The PTET is essentially a loophole that allows high-income earners to reduce their federal tax burden,” Mamdani said.

Menin joined the mayor in calling for the new revenue stream, which could mean another $1 billion to help close the city’s budget gap.

Gov. Kathy Hochul slammed the door on their proposal.

“That’s not happening,” Hochul said. “We are not changing PTET.”

Hochul seems smarter than Mamdani in that she knows when the sheep won’t take any more fleecing.