New York City Mayor Zohran Mamdani called on Tuesday for a 2 percent tax increase for New Yorkers earning more than $1 million a year and for an increase in the state's corporate tax rate, proposals he initially championed during the campaign, Reuters reported.
During testimony before the New York State Senate's 2026 budget hearing, Mamdani, a Democrat, said the city's budget gap was reduced from $12 billion to $7 billion by "taking an aggressive stance on savings without compromising city services, incorporating updated revenue estimates and bonuses, and using current reserves."
Despite the narrowing of the budget deficit, Mamdani said, New York has been "brought to the brink."
"I believe that the wealthiest individuals and the most profitable corporations should contribute a little more so that everyone can live with dignity. That's why, in addition to increasing the corporate tax rate, I am calling for a two percent increase in the personal income tax for the wealthiest New Yorkers," said Mamdani, who will release the city's preliminary budget on Tuesday.
Mamdani said a 2 percent tax increase would solve nearly half of the city's budget deficit. During the campaign, he advocated increasing the New York state corporate tax rate from 7,25 percent to 11,5 percent.
For any tax increase Mamdani proposes to take effect, it would have to be approved by New York's Democratic governor, Kathy Hokul.
A Hokul spokesman did not immediately respond to a request for comment.
The governor, who unveiled her budget last month, reiterated her opposition to any tax increases in the state.
"We are able to make transformative investments in our future. Without raising taxes. Without burdening the next generation with piles of debt," Hokul said last month.
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