❓WHAT HAPPENED: Governor Kathy Hochul (D-NY) is considering a massive tax increase on New York corporations in order to pay for the far-left socialist agenda of New York City’s mayor-elect Zohran Mamdani (D).
👤WHO WAS INVOLVED: Gov Kathy Hochul, New York City Mayor-elect Zohran Mamdani, President Donald J. Trump, and New York corporations and taxpayers.
📍WHEN & WHERE: November 14, 2025, in New York.
🎯IMPACT: New York has already seen significant cuts in federal funding and is projected to face an over $4 billion budget deficit in the coming fiscal year, complicating matters for both Hochul and Mamdani.
Governor Kathy Hochul (D-NY) is considering a massive tax increase on New York corporations in order to pay for the far-left socialist agenda of New York City’s mayor-elect, Zohran Mamdani (D). Following Mamdani’s victory in the city’s mayoral race, Hochul pledged not to raise taxes on the state’s high earners but is now considering a hike in the state corporate income tax instead.
Notably, the corporate tax increase under consideration would primarily serve as a means to alleviate a more than $4 billion budget deficit New York state is estimated to face in the coming fiscal year. However, Hochul’s administration believes the hike could also be used as a pay-for to cover some of Mamdani’s radical policy ideas, which have included city-owned grocery stores, a rent freeze, expansion of housing, free city buses, free childcare, and other far-left proposals.
While Hochul’s budget director has insisted that tax increases are “the last thing on my mind” and contends the state is in a “good spot financially,” the rumblings coming from Albany suggest New York’s top Democrat leader may be reversing course in light of Mamdani’s meteoric rise within the party.
The precarious fiscal situation forecasted for the state, though, could prove too much for Mamdani’s agenda. Already, New York state has seen federal cuts enacted by the Trump administration as the White House seeks to slash government waste and fraudulent spending. In early October, the Trump administration cut $18 billion in federal infrastructure funding to New York City over concerns it would be subjected to unconstitutional DEI constraints by city officials.
President Donald J. Trump previously threatened to cut federal funding to New York City if Mamdani were elected, citing his far-left policies. However, following Mamdani’s victory, Trump remarked that he would speak with the incoming mayor and “will help him a little bit, maybe.”
Hochul will likely face a strong challenge from Congresswoman Elise Stefanik (R-NY) in 2026, with polling currently showing the two neck and neck. Mamdani’s term begins on January 1.
Image by Marc A. Hermann / MTA.
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