New York, New York — New York City Mayor Zohran Mamdani urged state lawmakers Wednesday to approve higher taxes on top earners and corporations to address what he says is a multi-billion-dollar budget shortfall.
Testifying during the Legislature’s annual “Tin Cup Day” budget hearing, Mamdani asked for a 2% increase in personal income taxes on residents earning $1 million or more annually, saying the top 1% could afford to contribute an additional $20,000 each. His administration is also seeking legislative approval to raise the combined corporate tax rate to just over 22%.
Mamdani said the projected deficit for the next two years, previously estimated at $12.6 billion, has been revised down to roughly $7 billion. He attributed the shortfall to what he described as “negligent budgeting” under former Mayor Eric Adams. An Adams spokesperson disputed that claim, noting the city was left with $8 billion in reserves.
Gov. Kathy Hochul has rejected authorizing new local tax increases, calling the proposal a “non-starter.” Business leaders have warned that higher taxes on wealthy residents and corporations could drive employers out of the city.
Mamdani ruled out cuts to police and core services, arguing recurring revenue is necessary to balance the budget.
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