(The Center Square) — New York City Mayor Zohran Mamdani’s Democratic allies in the state Legislature are pushing for a new double-digit tax on big corporations to fund his leftist agenda.
A proposal filed by a group Assembly Democrats would authorize New York City to charge a surcharge of up to 25% on corporate taxes “should the mayor and City Council deem this necessary and appropriate” to approve.
The legislation was filed by Assemblywoman Diana Moreno, a democratic socialist who was elected to fill Mamdani’s Queens Assembly seat after he ran for mayor. In a summary of the bill, Moreno and co-sponsors said the revenues generated from a new corporate tax “could contribute to addressing the affordability crisis and strong public services for residents of the city.”
“New York City is home to dozens of Fortune 500 companies. Yet, for corporations with over $5 million in annual profits, the corporate tax rate is only 7.25%, significantly lower than neighboring states like New Jersey, which is set at 11.5%,” they wrote. “At the same time, the city faces an affordability crisis, with many families leaving the city due to the cost of living and growing income inequality.”
Backers of the proposal said Amazon, Alphabet, Meta, Tesla and other major corporations reported $315 billion in record profits in 2025, citing data from the Institute on Taxation and Economic Policy. Those companies collectively paid just 4.9% of that amount in federal corporate income taxes-with Tesla paying exactly zero, the lawmakers wrote in the bill’s summary.
The proposal comes as Mamdani seeks approval from state lawmakers and Gov. Kathy Hochul to raise taxes by 2% on households with income above $1 million and increase the combined corporate tax rate to just over 22%, making it the highest in the nation. He said higher taxes are needed to whittle down the $5.4 billion deficit he “inherited” from the Adams administration.
The democratic socialist, who filed his preliminary $127 billion budget earlier this month, has threatened to increase property taxes across the board in New York City unless Albany lawmakers approve his wealth and business tax plans. He has won support for his plan from progressive Democrats on the New York City Council, who’ve urged state lawmakers to approve the plans.
Hochul, who is running for reelection this year, has ruled out support for Mamdani’s wealth tax plan but pledged billions of dollars in state money to help plug the city’s budget gaps and expand universal child care programs.
Mamdani’s taxing plans have fueled concerns about an exodus of major employers from the nation’s largest city, with low-tax states like New Hampshire and Florida urging New York City businesses to relocate.
New York Republican Party Chairman Ed Cox pointed to previous reports showing that the Empire State “already leads the nation in outmigration as the most taxed state in America.”
“As New York bleeds, states and cities with no- or low-tax, business friendly environments are booming and building,” he said in a statement. “Many large financial firms — the geese that have laid the golden egg for New York’s coffers — are expanding their footprints elsewhere — and taking their jobs with them.”
