New York City Mayor Zohran Mamdani told state lawmakers on Wednesday that raising taxes on the wealthy is the clearest path out of the city’s budget crisis.
Speaking in Albany during his first “Tin Cup Day,” Mamdani urged the Legislature to approve a new income tax surcharge on New Yorkers earning more than $1 million a year. Tin Cup Day is the annual moment when city leaders travel to the state Capitol to press their case for budget help and policy changes.
A 2% surcharge on millionaires
Mamdani called for a 2% increase in personal income taxes on those making more than $1 million. He argued that the top earners can absorb the extra cost.
He framed the proposal in simple terms: a person earning $1 million a year would pay about $20,000 more. Mamdani said that surcharge alone could cover nearly half of the city’s projected shortfall.
A second push aimed at corporations
The mayor also reiterated a campaign pledge to seek a corporate tax increase. He wants the corporate rate raised from 7.25% to 11.5%.
He presented the two tax changes as linked. In his view, both are needed to protect city services and avoid deeper cuts.
The size of the gap and the fight over the numbers
Mamdani described a $12 billion budget gap spread over two fiscal years. He said his administration has already reduced that hole to about $7 billion through what he called aggressive savings.
However, critics have questioned the scale of the deficit. They point to revenues and end-of-year bonuses coming in higher than expected, arguing the picture is less dire than the mayor suggests.
Mamdani acknowledged stronger-than-projected revenue. Still, he insisted the budget remains far from balanced without new money.
What comes next in Albany
The mayor’s pitch sets up a familiar clash in New York politics: whether to close fiscal gaps with higher taxes, or with restraint on spending and new efficiencies.
For now, Mamdani is betting that the city’s budget math will persuade lawmakers that the fastest fix is to ask the wealthiest New Yorkers to pay more.