NYC Mayor Calls for Higher Taxes on Wealthiest Amid $12 Billion Budget Gap

New York City Mayor Zohran Mamdani has proposed raising taxes on the city’s wealthiest residents and most profitable corporations, warning that the city faces a fiscal crisis even larger than the Great Recession.

Speaking at a press conference, Mamdani highlighted a $12 billion budget deficit, attributing the shortfall to what he described as years of financial mismanagement under former city leadership.

“A $12 billion fiscal deficit cannot be resolved through efficiencies and savings alone,” the mayor said. “We need to reconsider our fiscal structure and ensure contributions from those best able to pay.”

Mamdani suggested an additional 2% income tax on the top 1% of earners as a means to stabilize city finances while maintaining and improving public services. He also emphasized the need to renegotiate the city’s fiscal relationship with New York State, citing past policies that shifted an unfair financial burden onto the city.

The mayor’s announcement adds pressure on Governor Kathy Hochul, who must approve any state-level tax changes. Hochul, seeking re-election in November, has previously opposed raising taxes, setting up a potential standoff over how to address the city’s financial shortfall.

City officials are balancing proposals for austerity measures with calls for increased taxation on the wealthy, amid growing political divisions over the best path forward. Mamdani warned that multiple measures would be needed to address the crisis, emphasizing that no single action could fully resolve the budget gap.

“If we act responsibly, we can put New York City back on firmer financial footing and build a stronger city for everyone,” Mamdani said.