ALBANY — Mayor Zohran Mamdani told state lawmakers Wednesday that the only way out of the city’s $12 billion budget deficit is to raise taxes on the wealthy.
Hizzoner, during his first Tin Cup Day in Albany, formally called on the state Legislature to increase income taxes by 2% on people making more than $1 million.
“I’m asking for a 2% personal income tax increase for the most affluent New Yorkers, someone making $1 million a year. The top 1% of New York City can afford to contribute $20,000 more in taxes,” the young mayor said.
“That 2% tax alone would solve nearly half of our budget deficit. I will continue to advocate for this policy, not only because it provides the most direct route out of this budget crisis, but because it will also transform what is possible in our state.”
The tax increase would complement his campaign promise to push the state to raise the corporate tax rate from 7.25% to 11.5%, the mayor said.
Mamdani said he and his team have been able to close the gap, but the budget is still far from balanced.
The new admin has managed to reduce the $12 billion deficit – $2 billion in this current budget year and another $10 billion in next year – to $7 billion, according to the mayor, who pointed to “aggressive” cuts.
Mamdani admitted that both revenues and year-end bonuses came in much higher than expected – a point raised by some critics who accused the young mayor of exaggerating the deficit.
The Democratic Socialist also complained that the city generates more revenue for the state than it gets back in financing.
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