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Tax-the-Rich Push Swells in Albany as Hochul Rejects Income-Tax Hikes

The governor has ruled out higher state income taxes, leaving negotiations before the April 1 budget deadline unresolved.

Overview

  • More than 1,000 to 1,500 advocates bussed to the Capitol for a DSA- and Our Time–led rally backed by major unions, though few prominent elected officials attended and Mayor Zohran Mamdani did not appear.
  • The DSA-backed bill sponsored by Sen. Robert Jackson and Asm. Demond Meeks would add brackets starting around $500,000 for joint filers at 7.5% and raise the top state rate to 24% for incomes above $20 million, which Mamdani previously supported as a co-sponsor.
  • Gov. Kathy Hochul reiterated opposition to raising income taxes, added roughly $1.5 billion in extra aid to New York City, and touted expanded child care funding that includes a city pilot for 2‑year‑olds.
  • Mamdani’s preliminary budget keeps pressure on Albany by warning of a 9.5% city property‑tax rate increase if state tax hikes are rejected, a move estimated to raise about $3.7 billion.
  • Assembly Speaker Carl Heastie said raising New York City property taxes is a nonstarter and expects new revenue measures in the Assembly’s plan, as housing stakeholders warn a property‑tax hike would strain multifamily buildings and co-ops/condos, with Queens condos facing a 21.7% annual increase if the added hike is imposed.