New York Democrats to propose income tax hike that Gov. Kathy Hochul opposes
New York Democratic state lawmakers plan to propose a tax hike on wealthy New Yorkers and corporations – pitting themselves against Gov. Kathy Hochul, who has repeatedly said no to the idea and is up for reelection this year.
New York State Senate Majority Leader Andrea Stewart-Cousins' office confirmed to CBS News that the Senate's budget will have a "robust progressive and corporate tax proposal," including a "version of a millionaire's tax."
Tax increase may not be limited to NYC
When asked if proposed tax increases would apply statewide or just to New York City, Stewart-Cousins' office said the details are still being worked out, but "possibly a combination of the two."
"I think I've said repeatedly that we are certainly trying to meet the moment, and revenue raisers will certainly be part of our package," Stewart-Cousins told reporters on Wednesday.
Once the proposals from the State Senate and Assembly are unveiled, three-way negotiations kick off with the governor's office ahead of the state's April 1 deadline.
On Thursday, Hochul told reporters "the legislature has put in tax increases every year I've been governor."
"I know how to negotiate," she added.
Mamdani cites budget gap
Hochul's record $260 billion state budget proposal, released in January, did not include any broad-based income tax raises, despite pressure from New York City Mayor Zohran Mamdani, who has vigorously called on the state to "tax the rich."
Mamdani said "raising taxes on the richest New Yorkers and the most profitable corporations" – both of which require backing from the state – is the only way to bridge the city's $5.3 billion budget gap.
Otherwise, Mamdani said he will have no other choice but to raise property taxes by 9.5% and raid the city's reserves.
"This will be Hochul's tax on homeowners if she refuses to choose a side and tax the super rich," said Batul Hassan, co-chair of the Democratic Socialists of America's "Tax the Rich" campaign.
"The public is on Mamdani's side"
According to a Siena poll, a majority of New York voters support the state government allowing New York City to raise personal income taxes on residents earning at least $1 million per year.
"The public is on Mamdani's side, as the proposal is supported 54-29% among all voters statewide, and it has support from 62% of city voters and 72% of statewide Democrats," said Siena pollster Steven Greenberg.
Hochul said that there are ongoing conversations between her budget team and the mayor's.
