Overview
- Politico and Bloomberg report preliminary, back‑of‑the‑napkin discussions about increasing New York’s corporate tax rate, with no formal proposal on the table.
- The potential hike is being explored to help close a projected $4 billion state budget gap and could also support Mayor‑elect Zohran Mamdani’s priorities such as universal childcare.
- Hochul and Mamdani met Thursday to discuss shared goals, with the mayor‑elect seeking to raise the corporate rate from roughly 7.3–7.5% to about 11–11.5% to finance an estimated $10 billion agenda including free buses and a new Department of Community Safety.
- Republican figures including Elise Stefanik and Nassau County Executive Bruce Blakeman condemned the reported shift, framing it as a cave to the left with economic downsides before the 2026 election cycle.
- Steven Fulop, incoming CEO of the Partnership for New York City, warned the move would be “absolute suicide,” arguing the combined burden for NYC firms would be far less competitive than neighboring states.