Gov. Kathy Hochul says New York should not raise taxes on high-net-worth individuals

ALBANY, N.Y. — Gov. Kathy Hochul said last week that New York should not raise taxes on high-net-worth individuals or on businesses.

Her comments came after New York City Mayor Zohran Mamdani pushed a plan to increase taxes on the wealthy. Hochul argued that such moves would drive people and jobs out of the state.

The governor has signed previous tax increases during her time in office. Those included higher taxes on corporations and high earners in state budgets passed in recent years.

Hochul faces a reelection campaign next year. Political observers say her stance on taxes could play a role with voters in New York, which relies heavily on revenue from its wealthiest residents.

State data shows that the top 1% of earners pay more than 45% of the state's personal income tax. New York already has one of the highest top marginal income tax rates in the country, at 10.9% for incomes above $25 million.

Mamdani, a democratic socialist, proposed raising taxes on incomes above $1 million to fund city programs. Hochul pushed back, saying the state and city should focus instead on making New York more competitive.

"We should not be raising taxes on high-net-worth individuals," Hochul said. She added that the state needs to keep businesses from leaving.

Critics pointed out that Hochul supported tax hikes in the past. In 2021, she backed a budget that increased taxes on incomes over $1 million. Lawmakers also raised corporate taxes that year.

New York lost population in recent years. Some residents and businesses cited high taxes and the cost of living as reasons for moving to states like Florida and Texas.

Hochul's office said the governor supports targeted investments but wants to avoid broad tax increases that could hurt the economy. The state projects a budget gap of several billion dollars in the coming years.