{"id":180292,"date":"2026-03-31T00:00:08","date_gmt":"2026-03-31T00:00:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/180292\/"},"modified":"2026-03-31T00:00:08","modified_gmt":"2026-03-31T00:00:08","slug":"nys-lawmakers-eye-corporate-tax-hike-to-bail-out-mamdani-nyc-budget-deficit","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/180292\/","title":{"rendered":"NYS lawmakers eye corporate tax hike to bail out Mamdani, NYC budget deficit"},"content":{"rendered":"

New York state Democratic lawmakers are pushing to raise the<\/a> corporate tax rate on businesses<\/a> to help bail out Mayor Zohran Mamdani, who is facing a projected $5.4 billion deficit in the city budget<\/a>, sources told The Post.<\/p>\n

\u201cThere\u2019s a huge appetite to increase the corporate tax,\u201d said a source who recently met with both state Assembly Speaker Heastie (D-Bronx) and Senate Majority Leader Andrew Stewart-Cousins (D-Yonkers).<\/p>\n

\u201cIt\u2019s the most popular of the menu of taxes,\u201d the city official added.<\/p>\n

Democrats in Albany are willing to raise the state\u2019s corporate tax rate in order to help Mayor Zohran Mamdani fund his city budget. Robert Miller for NY Post<\/p>\n

Another source familiar with the budget talks said lawmakers were \u201cseriously discussing\u201d a corporate tax increase.<\/p>\n

Democrats in the Assembly are \u201cvery firm\u201d in demanding some sort of tax increase, the Albany insider said. <\/p>\n

It\u2019s bound to put them at odds with Gov. Kathy Hochul, who has been opposed to a big tax hike as she seeks re-election this year <\/a>and aims to keep wealthy New Yorkers and businesses from fleeing New York.<\/p>\n

\u201cSome in Albany may be pushing for a political win by raising taxes just to be able to say that they hurt corporations, but the reality is that New York\u2019s economy takes the loss if we continue to raise taxes when it isn\u2019t necessary,\u201d said Steven Fulop, president and CEO of the pro-business\u00a0Partnership for New York City.<\/p>\n

\u201cWe are forcing jobs to leave New York as we saw with Apollo this week which only further deepens the affordability crisis. The governor is right to push back, and we hope she holds the line,\u201d Fulop said.<\/p>\n

Mamdani threatened to raise the city\u2019s property tax if Gov. Kathy Hochul and Albany don\u2019t raise taxes on corporations and wealthy New Yorkers.<\/p>\n

It was revealed on Sunday that a major Wall Street firm, Apollo Global Management<\/a>, a $900 billion asset manager, is plotting a second US headquarters in the Sunbelt as Mamdani pushes to hike taxes on deep-pocketed corporations.<\/p>\n

Legislators in the Assembly and Senate have been poring over a list of tax hikes on the wealthy sought by Mamdani<\/a>, including increasing the income tax levy on millionaires, on estates and on corporate taxes.<\/p>\n

Lawmakers have particularly discussed the corporate tax in closed-door conversations, sources said.<\/p>\n

During last year\u2019s mayoral campaign, Mamdani proposed raising the top corporate income tax rate for major corporations from 7.25% to 11.5%.<\/p>\n

Another proposal would increase the city\u2019s corporate tax from 9% to 10.8% on financial sector firms and 8.85% to 10.62% on non-finance sectors. Mamdani\u2019s team projected that such an increase would raise $1.5 billion a year.<\/p>\n

The Democrat-run state Assembly and Senate have their own corporate tax proposals similar to Mamdani\u2019s.<\/p>\n

The Assembly estimates that its own proposal to increase the statewide corporate tax from 7.25% to 9.25% for companies making more than $10 million would generate around $1.9 billion per year in revenue.<\/p>\n

The Senate proposes increasing the statewide corporate tax rate from 7.25% to 9% for businesses with $5 million in income.<\/p>\n

Sen. Bernie Sanders (I-Vt.) \u2014 a mentor of Mamdani \u2014 speaking at a rally at Lehman College in The Bronx calling on Hochul to raises taxes on the wealthy on March 29, 2026. Anadolu via Getty Images<\/p>\n

But Hochul\u2019s office said Monday she remains opposed to such increases as she seeks re-election to a second, full four-year term. She worries about businesses as well as wealthy New Yorkers who pay a disproportionate share of income taxes fleeing the city.<\/p>\n

\u201cThe governor\u2019s position has not changed. She has been clear she will work with Mayor Mamdani and the state legislature to find ways to support New York City and deliver on a shared affordability agenda,\u201d said Hochul spokesperson Jen Goodman.<\/p>\n

The state budget is due Wednesday, April 1. But Hochul and lawmakers are not close to an agreement and talks could drag on for weeks.<\/p>\n

Mamdani did not attend the \u201cTax the Rich\u201d rally. REUTERS<\/p>\n

An Assembly Democratic source said Hochul still holds tremendous sway in budget negotiations, and agrees she\u2019ll likely fight any tax increase this year.<\/p>\n

The insider said Hochul and the legislature can tap into the state\u2019s $14.6 billion to settle any differences, if necessary.<\/p>\n

\u201cThe rainy day fund is in good shape,\u201d the source said.<\/p>\n

Hochul and the legislature drained $7 billion from the emergency fund last year to shore up the Unemployment Insurance Trust Fund\u2014 to increase benefits for unemployed New Yorkers and cut costs to businesses. <\/p>\n

The city budget, heavily reliant on Albany support, isn\u2019t due until July 1.<\/p>\n

Negotiations are so sensitive that that tax-happy Mamdani skipped a tax the rich rally Sunday headlined by democratic socialist mentor Sen. Bernie Sanders<\/a> to avoid offending Hochul.<\/p>\n","protected":false},"excerpt":{"rendered":"New York state Democratic lawmakers are pushing to raise the corporate tax rate on businesses to help bail…\n","protected":false},"author":2,"featured_media":180293,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[4241,19675,7739,10691,14927,15660,426,57,9,17566,18571,56,63,65,64,4281,58,82],"class_list":{"0":"post-180292","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york-city","8":"tag-albany","9":"tag-andrea-stewart-cousins","10":"tag-budget","11":"tag-carl-heastie","12":"tag-city-budget","13":"tag-corporate-taxes","14":"tag-kathy-hochul","15":"tag-metro","16":"tag-new-york","17":"tag-new-york-state-assembly","18":"tag-new-york-state-senate","19":"tag-ny","20":"tag-nyc","21":"tag-nyc-headlines","22":"tag-nyc-news","23":"tag-state-budget","24":"tag-us-news","25":"tag-zohran-mamdani"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/180292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=180292"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/180292\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/180293"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=180292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=180292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=180292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}