NEW YORK (PIX11) — With just days before New York’s state budget deadline, lawmakers are pushing Gov. Kathy Hochul for higher taxes on the wealthy to help close New York City’s budget gap.
On Sunday, hundreds gathered in the Bronx for a “Tax the Rich” rally, calling on state leaders to increase taxes on millionaires and large corporations.
“Now is time to build a New York that works for the working people,” said State Assemblymember Diana Moreno (D–Queens).
U.S. Sen. Bernie Sanders (I–Vermont) also joined the call.
“The working class in America is being decimated and has been under attack for many, many years,” Sanders said.
State Sen. Kristen Gonzalez (D–59th District) framed the proposal as an investment in essential services.
“Taxing corporations really means investing in us, so children can go to school, so we can afford childcare,” Gonzalez said.
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The budget gap
The rally comes as lawmakers race to finalize the state budget before the April 1 deadline. A major sticking point: New York City’s finances.
City officials say the city is facing a $5 billion budget deficit, which Mayor Zohran Mamdani argues was left behind by the previous administration.
Hochul has proposed allocating roughly $3 billion from the state budget to help close the gap, but that still leaves about $2 billion unresolved.
The mayor has said he doesn’t want to raise property taxes, so to make up for the difference, he’s been asking the state to tax millionaires and corporations, something he’s been pushing for since his campaign.
“This is a fiscal crisis that was not created by working and middle-class New Yorkers, and should not be placed on their backs,” Mamdani said earlier this year.
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What “tax the rich” would mean
Supporters are calling for several tax increases targeting high earners and corporations. Proposals include:
A higher income tax rate (around 11.5%) for those earning more than $1 million a year
Increased taxes on capital gains, including profits from stocks and real estate
Additional taxes on the highest earners (so-called “millionaire’s tax”)
Advocates say the measures would generate billions in new revenue for public services and help stabilize the city’s finances.
Hochul: tax hikes are ‘off the table’
Despite growing support among some lawmakers, Gov. Hochul has made it clear she is not considering additional tax increases on the wealthy at this time.
“Yes. Off the table,” Hochul told PIX11 News when asked about raising taxes on high earners earlier this year.
So, what’s next?
New York City remains the economic engine of the state, making its financial stability critical to the broader budget.
With some state lawmakers now backing new tax proposals, the debate could complicate already tense negotiations in Albany. The state budget is due April 1, and any delay could impact funding for services across New York.
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