New York City Mayor Zohran Mamdani urged state lawmakers to approve a 2% income tax hike on high earners, arguing it is the "most direct route" to closing the city's multibillion-dollar budget gap.
Speaking in Albany on Wednesday during his first Tin Cup Day as mayor, the democratic socialist said the only viable solution to the city's fiscal crisis is to raise taxes on residents earning more than $1 million annually, the New York Post reported.
"I'm asking for a 2% raise in personal income taxes on the most affluent New Yorkers," Mamdani said, adding that "the top 1% of New York City can afford to contribute $20,000 more in taxes."
According to the mayor, the increase would generate enough revenue to eliminate nearly half of the city's remaining deficit.
"That 2% tax alone would resolve nearly half of our budget deficit," he said. "I will continue to advocate for these policies … because they offer the most direct route out of this budget crisis."
The city initially faced a projected $12 billion shortfall — $2 billion in the current fiscal year and $10 billion next year. Mamdani said aggressive savings measures have reduced that figure to roughly $7 billion, though he claimed the budget remains far from balanced.
Critics have questioned whether the deficit was overstated, noting that tax revenues and end-of-year bonuses came in higher than projected. Mamdani acknowledged the stronger-than-expected revenue but maintained that structural problems remain.
The proposed income tax hike builds on his campaign pledge to push Albany to raise the corporate tax rate from 7.25% to 11.5%.
Mamdani's ask coincided with his broader effort launched last month to secure more state funding, arguing that New York City generates $21 billion more in revenue for the state than it receives in aid.
"We must raise taxes on the wealthiest few in New York City so that we can invest in the many," he said previously. "No longer can this city … sustain this kind of an imbalance."
The push sets up a potential clash with Democrat Gov. Kathy Hochul, who is running for reelection and has repeatedly ruled out new taxes.
"We're not raising taxes in the state of New York," Hochul said last month in response to Mamdani's effort. "I'm not raising taxes for the sake of raising taxes."
Mark Swanson ✉
Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
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