Mayor Zohran Mamdani said last week that tax increases are vital to help the city close its $5.4 billion budget gap — but various business groups and other observers argue that there are plenty of other ways to reduce or even eliminate the deficit.
Mamdani proposed a preliminary budget with a $5.4 billion two-year gap, after Gov. Kathy Hochul stepped up with an additional $1.5 billion for New York City, citing a reluctant “path of property taxes and raiding our reserves” as a last resort. He described the property tax path as a “last resort” should the state decline to increase taxes on wealthy New Yorkers and corporations; Hochul has repeatedly said she would not support any new tax increases.
