(The Center Square) — A group of progressive Democrats on the New York City Council are calling on Gov. Kathy Hochul to support Mayor Zohran Mamdani’s plan to hike taxes on the city’s top earners.
In a statement, twenty-two “progressive” Democrats on the 51-member Council called on the state Legislature and Gov. Kathy Hochul to approve the Fair Share Act, which would set a 2% surtax on New York City households with income of more than $1 million a year.
“Amid a profound fiscal crisis, our city stands at a crossroads,” they wrote to the governor and legislative leaders. “The power to bring New Yorkers relief rests with Governor Hochul and the State Legislature. It is time to Tax the Rich.
The lawmakers, led by Councilman Chi Ossé, said the legislation “would give our city the power to require more from those who can afford it in service of the common good.” They disputed claims by fiscal watchdogs that the wealth tax would prompt an exodus of job creators, claiming “it is the working class fleeing the city at an alarming rate.”
“We are asking the state to entrust our city with the authority to govern in the interest of working people,” they wrote. “Our neighbors cannot be forced into decisions between paying the bills and putting food on the table, while the wealthiest are protected from paying what they owe. A small increase for the wealthiest is reasonable. It is responsible.”
The demands come as Mamdani is pursuing a campaign pledge 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 the tax hikes 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 corporation tax plans.
Mamdani’s 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.
A September report by the Public Policy Institute of New York State found that 72% of 500 employers surveyed don’t think the state’s economic conditions are good, and only 21% believe the state is on the right track.
The group said its analysis suggests that New York has lost its competitive edge, ranking 50th in the nation for both outmigration and taxation during the 2020-22 period covered by the report.
Democratic Gov. Kathy 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. But that hasn’t stopped a group of Democrats in the state Legislature from pushing for consideration of the proposed Fair Share Tax in the current session.
On Wednesday, about 1,200 protesters gathered outside the state Capitol in Albany calling on Hochul and lawmakers to support the proposed tax on top earners.
