New York’s Democratic lawmakers are pitching tax hikes on wealthy New Yorkers and corporations, setting up a clash with Gov. Kathy Hochul, who has rejected calls to increase rates in an election year.
Legislative leaders rolled out the so-called one-house budget plans this week, which kick off negotiations with Hochul on a new spending plan ahead of the state’s April 1 budget deadline.
Democrats in the state Senate and Assembly propose raising $5 billion more for New York City to help it reduce a budget deficit through a combination of taxes and increased state aid.
In the Assembly, Democrats want to raise $2 billion by increasing tax rates on individuals who make more than $5 million a year, $1.9 billion from corporations and $95 million from a “crypto mining facility tax.”
Meanwhile, Senate Democrats want to raise $5.2 billion by pushing through a new income tax hike on the city’s top earners and eliminating tax breaks for climate polluters, among other changes.
The proposals come in response to requests from New York City Mayor Zohran Mamdani, who has asked lawmakers for authority to increase taxes on the city’s wealthiest and corporations to help reduce a $5.4 billion budget shortfall and fund his progressive agenda.
