Overview
- Mayor-elect Zohran Mamdani is pushing to lift New York’s top corporate tax rate from 7.25% to 11.5% to fund priorities such as universal childcare and free buses, which would tie the state with New Jersey for the highest rate.
- Gov. Kathy Hochul said Monday she has not decided on any corporate tax change, with reporting indicating her team has discussed an increase as the state faces a reported $34.3 billion shortfall through fiscal 2029 and waits on federal funding clarity.
- Democratic Socialists of America and allied lawmakers rallied in New York City, with state Sen. Jabari Brisport warning of a primary challenge if Hochul resists; Senate leaders like Mike Gianaris voiced support for advancing Mamdani’s agenda in Albany.
- Separately, state Sen. John Liu and Assemblymember Phara Souffrant Forrest introduced a 2% surcharge on incomes over $1 million that sponsors say could raise up to $4 billion annually for housing, childcare, transit and healthcare.
- Nassau County Executive Bruce Blakeman, Republican lawmakers and business groups denounced the proposed hikes as a threat to jobs and affordability on Long Island, while some economists countered that exodus fears are overstated and new revenue could bolster services.