Mamdani calls for tax hikes on millionaires and corporations, more state funding as NYC faces $10 BILLION deficit

New York City Mayor Zohran Mamdani acknowledged Tuesday that the city is facing a projected $10 billion budget deficit in the coming year and said he plans to push state lawmakers to raise taxes on wealthy residents and corporations to address the shortfall.

“We must raise taxes on the wealthiest few in New York City so that we can invest in the many,” the socialist mayor said on Tuesday.

During his campaign, Mamdani said he would raise taxes on millionaire New Yorkers and corporations to fund his proposed initiatives, a stance that drew backlash even from within his own party. New York Governor Kathy Hochul has repeatedly said she opposes income tax increases.

Speaking Wednesday during a budget announcement at City Hall, Mamdani reiterated his position, saying he wants households making more than $1 million to pay an additional 2 percent in taxes. He also said he is less concerned about businesses leaving the state than about residents being pushed out by the high cost of living.

“We are speaking about a fiscal crisis at a scale greater than the Great Recession,” Mamdani said. “There will not be one single thing that can answer that crisis. It will require us to pursue every single avenue.”

“That also means raising taxes on the wealthiest New Yorkers and the most profitable corporations,” he added, saying it would also require “recalibrating the relationship with the state.”

Hochul responded by downplaying the mayor’s remarks and reiterating her opposition to tax increases.

"I have said, and the news flash may be to you if you haven't heard me, we are not raising taxes in the state of New York, we are not raising taxes for the sake of raising taxes, so he will continue to say what he needs to say," Hochul said.