Overview
- Gov. Kathy Hochul told FOX 5 she will not raise income taxes but said other revenue options are on the table, signaling openness to a corporate tax hike.
- Politico reported that state officials are quietly discussing a possible increase in the corporate rate, though no plan has been announced.
- Hochul attributed the budget strain to federal shifts under President Trump, with her budget office projecting a $4 billion annual hit starting in 2027 and a $750 million shortfall this year.
- Progressive pressure has intensified after Zohran Mamdani’s victory, with activists pushing tax increases and the mayor‑elect proposing an 11.5% corporate rate to fund programs like universal childcare and free bus service.
- Hochul’s budget office estimates universal childcare would cost more than $10 billion once phased in, and any tax changes would require approval by the state legislature.