State lawmakers in New York are considering several proposals to tax the rich, including a tax on luxury second homes and changes to a tax credit favored by the wealthy.
Mayor Zohran Mamdani’s preferred option — raising personal income taxes for millionaires — has support in the State Assembly and Senate, and is backed by more than 60 percent of New York City voters. But Gov. Kathy Hochul firmly opposes the idea.
Whatever happens in this year’s budget deal, Mr. Mamdani will most likely keep pushing to raise income taxes, in no small part because the success of his universal child care plan, his signature policy proposal, depends on it.
The mayor’s plan is simple: increase the city income tax rate by two percentage points for those who earn $1 million per year or more, from 3.88 percent to 5.88 percent — the equivalent of a 51 percent increase. Doing so could raise an additional $3 billion in revenue annually.
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Mayor Zohran Mamdani’s preferred option — raising personal income taxes for millionaires — has support in the State Assembly and Senate, and is backed by more than 60 percent of New York City voters. But Gov. Kathy Hochul firmly opposes the idea.
Whatever happens in this year’s budget deal, Mr. Mamdani will most likely keep pushing to raise income taxes, in no small part because the success of his universal child care plan, his signature policy proposal, depends on it.
The mayor’s plan is simple: increase the city income tax rate by two percentage points for those who earn $1 million per year or more, from 3.88 percent to 5.88 percent — the equivalent of a 51 percent increase. Doing so could raise an additional $3 billion in revenue annually.
Do Higher Taxes Drive the Rich Away? Mamdani’s Plan Revives the Question.
Mayor Zohran Mamdani wants to raise income taxes on New York City’s millionaires. Tax increases elsewhere have not led to an exodus, but some worry the city is reaching a tipping point.
