Authored by Kimberly Hayek via The Epoch Times,
New York City Mayor Zohran Mamdani called on state lawmakers Wednesday to approve a 2 percent personal income tax increase on the city’s wealthiest residents as well as a hike in the corporate tax rate in a bid to close a multibillion-dollar budget gap.
The mayortestifiedin a New York State Senate 2026 budget hearing about how the city’s projected deficit had decreased from $12 billion to $7 billion.
He attributed the improvement to “assuming an aggressive posture on savings without compromising city services, incorporating updated revenue and bonus estimates, and using in-year reserves.”
Mamdani said nonetheless that New York remains “placed on a ledge,” and needs more revenue from high earners and businesses.
“I believe the wealthiest individuals and most profitable corporations should contribute a little more so that everyone can live lives of dignity,”Mamdani, a democratic socialist, said in prepared remarks.
“That’s why—along with raising the corporate tax—I’m asking for a 2 percent personal income tax increase on the most affluent New Yorkers.”
The mayor will release the city’s preliminary budget next Tuesday. He conjectured the personal tax surcharge, proposed to affect those earning more than $1 million annually, would close the remaining deficit by nearly half of what’s remaining. Mamdani also underscored his campaign pledge to increase the state’s corporate tax rate from 7.25 percent to 11.5 percent.
Gov. Kathy Hochul and the legislature must approve any tax changes.
In her budget presentation last month, the governor expressed opposition to any such hikes.
Source: ZeroHedge News
