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New York Governor Kathy Hochul is considering increasing corporate taxes to close a potential budget shortfall amid federal cuts, but that no decision has been made, a source familiar with the matter has said.
“The state is on strong financial footing today but much of the budget outcome at the start of next year is going to be largely dependent on what the federal government does and we’re watching that closely and trying to plan accordingly,” the source said.
The source did not say what new tax rate was under consideration by Hochul. New York City Mayor-elect Zohran Mamdani has advocated to increase the top corporate rate from 7.25 per cent to 11.5pc.
The issue of affordability was at the centre of Mamdani’s campaign with him promising to freeze rent and raise taxes on the rich.
New York is facing a $34.3 billion budget shortfall through its 2029 fiscal year that begins April 1 and ends on March 31.
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