NYC Mayor Zohran Mamdani calls for tax hike on richest residents, corporations to fix massive budget deficit
Mayor Zohran Mamdani is calling for a tax hike on New York City's wealthiest residents and corporations to close a massive budget gap.
At a town hall Wednesday morning, Mamdani blamed former Mayor Eric Adams' administration's mismanagement, in part, for the massive $12 billion deficit.
"This crisis has a name and a chief architect. In the words of the Jackson 5, it's as easy as ABC. This is the Adams budget crisis," Mamdani said.
The mayor said he's not too worried about a business exodus if there is a tax increase. He said he's more concerned about working-class residents leaving the city because of the high cost of living.
"The time has come to tax the richest New Yorkers and most profitable corporations," he said.
A spokesperson for the former mayor said Adams inherited a "$10 billion debt that was compounded by the worst public health and economic crisis in New York City history."
NYC facing largest budget gap since Great Recession, official says
New York City Comptroller Mark Levine said on Jan. 16 that the city faces a budget shortfall of $2.2 billion this fiscal year and $10.4 billion in the 2027 fiscal year, adding it's the largest gap since the Great Recession in 2008.
Levine also blamed the Adams administration, saying its spending led to the high budget projections for the next two years.
"We're also calling out the cause of this gap, which was the budget practices of the previous administration, over-reliance on one-shot financial measures, such as drawing down on prepaid expenses, and especially by underaccounting for expenses that we know the city will [incur], such as overtime pay, such as shelter costs," Levine said.
The state's comptroller, Thomas DiNapoli, said budget gaps were previously understated.
"Given federal funding uncertainty, New York City must plan defensively and be clear about the numbers. I commend Mayor Mamdani for speaking plainly about these stark fiscal realities," DiNapoli said.
Tax on the rich would fulfill a Mamdani campaign promise
Mamdani's mayoral campaign centered around reducing the cost of living for residents. He promised to freeze the rent for the city's rent-stabilized units and to provide free bus services.
To pay for those proposals, Mamdani previously said he would raise taxes on corporations to 11.5%. He also said he would institute a 2% tax rate for individuals earning $1 million or more.