Authored by Kimberly Hayek via The Epoch Times,

New York City Mayor Zohran Mamdani called on state lawmakers Wednesday to approve a 2 percent personal income tax increase on the city’s wealthiest residents as well as a hike in the corporate tax rate in a bid to close a multibillion-dollar budget gap.

The mayor testified in a New York State Senate 2026 budget hearing about how the city’s projected deficit had decreased from $12 billion to $7 billion.

He attributed the improvement to “assuming an aggressive posture on savings without compromising city services, incorporating updated revenue and bonus estimates, and using in-year reserves.”

Mamdani said nonetheless that New York remains “placed on a ledge,” and needs more revenue from high earners and businesses.

“I believe the wealthiest individuals and most profitable corporations should contribute a little more so that everyone can live lives of dignity,” Mamdani, a democratic socialist, said in prepared remarks.

“That’s why—along with raising the corporate tax—I’m asking for a 2 percent personal income tax increase on the most affluent New Yorkers.”

The mayor will release the city’s preliminary budget next Tuesday. He conjectured the personal tax surcharge, proposed to affect those earning more than $1 million annually, would close the remaining deficit by nearly half of what’s remaining. Mamdani also underscored his campaign pledge to increase the state’s corporate tax rate from 7.25 percent to 11.5 percent.

Gov. Kathy Hochul and the legislature must approve any tax changes.

In her budget presentation last month, the governor expressed opposition to any such hikes.

“We’re able to make transformative investments in our future. Without raising taxes. Without saddling the next generation with mounds of debt.”

Mamdani during his campaign promoted progressive reforms to fund proposals such as free public transit, rent stabilization and housing programs, universal child care, and a $30 minimum wage, leading to his upset win over more moderate Democrats.

He called for a 2 percent surcharge on high earners on the campaign trail.

Estimates suggested it could create approximately $4 billion annually to support increased public services and affordability programs, as well as offset costs for broad social investments while not saddling middle- and low-income residents.

France’s experiment with a similar surtax on high incomes underperformed revenue projections.

It yielded €400 million in its first year against an expected 1.9 billion euros. The tax changes led to taxpayer optimizations, relocations, and implementation delays.

The New York mayor’s office has not detailed timelines or projected economic impacts, and state lawmakers are expected to consider the proposals in upcoming sessions.

Meanwhile, California voters will consider a proposed billionaire tax on the November 2026 ballot, which would impose a one-time 5 percent tax on residents with more than $1.1 billion in assets.