Kathrine Frich
New York City’s new mayor is pushing for tax increases on top earners.
Zohran Mamdani says the measures are necessary to prevent deeper financial strain in America’s largest city.
According to Reuters, Mamdani on Wednesday urged a two percentage point rise in income taxes for residents earning more than $1 million annually, along with a higher corporate tax rate at the state level.
Budget pressure
Speaking during New York State Senate hearings on the 2026 budget, the Democratic mayor said the city had narrowed its projected deficit from $12 billion to $7 billion.
He attributed the reduction to “taking a firm approach to savings without compromising public services, updating revenue and bonus estimates, and using in-year reserves.”
Despite the improvement, Mamdani warned that New York “is on the edge of the abyss.”
Tax hike push
“I think the richest and most profitable companies should contribute a little more so that everyone can live with dignity,” Mamdani said, ahead of presenting his preliminary budget proposal.
“That’s why, in addition to raising the corporate tax rate, I’m calling for a 2% increase in the income tax rate for the wealthiest New Yorkers.”
He argued that the proposed income tax rise alone would cover nearly half of the remaining deficit.
State-level hurdle
During his election campaign, Mamdani backed raising the New York State corporate tax rate from 7.25% to 11.5%.
Any change to state tax policy would require approval from Governor Kathy Hochul. While both are Democrats, Hochul has previously signaled resistance to tax increases.
Last month, when unveiling her own budget proposal, she said: “We can make transformative investments in our future. Without raising taxes. Without burdening the next generation with mountains of debt.”
A spokesperson for Hochul did not immediately respond to requests for comment on Mamdani’s latest proposal.
Sources: Reuters, Hotnews.
