Particle.news
Download on the App Store

Mamdani Seeks Albany OK for 2% Millionaires Tax as NYC Deficit Recalculated to $7 Billion

State approval remains uncertain because Governor Kathy Hochul has rejected raising income taxes.

Overview

  • Testifying at the Legislature’s Tin Cup Day hearing, the mayor said updated revenues, stronger Wall Street bonuses, use of in‑year reserves and targeted savings cut the two‑year gap from about $12 billion to roughly $7 billion.
  • He asked lawmakers to authorize a 2% personal income‑tax increase on earners above $1 million and to lift the corporate rate to 11.5%, saying the millionaire tax alone could cover nearly half of the shortfall.
  • Lawmakers questioned him for hours, with democratic socialists signaling support and moderates and Republicans warning that higher taxes risk accelerating outmigration and business losses.
  • Budget Director Sherif Soliman said agency “chief savings officers” are pursuing efficiencies expected to yield more than $1 billion, with specifics to be outlined in the Feb. 17 preliminary budget.
  • New York City cannot change income or corporate tax rates without state approval, and the outcome will be decided in Albany’s budget talks due by April 1 as the city works toward a balanced plan by July 1.