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Twenty-two members of the New York City Council are calling on state lawmakers to pass legislation that would allow the city to raise taxes on its wealthiest residents, as New York City faces a $5.4 billion budget gap.
According to the Norwood News, the council members released a joint letter on Wednesday, urging Governor Kathy Hochul and the State Legislature to pass the Fair Share Act — a bill that would give New York City the power to impose a 2% income tax increase on residents earning more than $1 million per year.
"It is time to tax the rich," the 22 members wrote in their joint statement. They added, "It is the working class fleeing the city at an alarming rate," pushing back against concerns that wealthy residents would leave if taxes rise.
Currently, New York City cannot change its own income tax rates without approval from Albany. The council members say that needs to change. "We are asking the State to entrust our City with the authority to govern in the interest of working people," they said.
The push comes as Mayor Zohran Mamdani has outlined two options for closing the city's budget gap: raise income taxes on the wealthy or impose a 9.5% across-the-board property tax increase. As reported by City & State, Governor Hochul has drawn a firm line, saying she won't raise income taxes, even as she recently offered the city an additional $1.5 billion in state aid over two years.
More than 1,500 people marched to the state Capitol in Albany on Wednesday to pressure Hochul and legislative leaders to act. The rally was organized by the New York City Democratic Socialists of America and Our Time for NYC, which bussed most of the advocates from the city.
Council Member Chi Ossé, who hosted the rally, told the crowd, "We must support the working families of New York. We must stand up to Donald Trump."
State Senator Jabari Brisport told City & State, "The governor is going to have to answer to the thousands of New Yorkers who she's supposed to represent who are demanding she tax the rich."
Assembly Speaker Carl Heastie said he expects revenue-raising measures to appear in the Assembly's budget proposal again, noting, "We've always been supportive of asking the wealthier to pay a little more." However, he made clear that raising property taxes is "a nonstarter" for his chamber.
The debate over whether higher taxes drive wealthy residents out of the city is ongoing. According to The City, the number of millionaires in New York City — roughly 34,000 — has remained relatively stable since 2020, despite the city already having the highest combined state and local tax rate in the nation at 14.8% for top earners.
Nathan Gusdorf, executive director of the Fiscal Policy Institute, argued that high taxes don't necessarily drive people away. "The most powerful regional economies have high tax rates," he said, pointing to New Jersey, Massachusetts, and California.
Not everyone agrees. Andrew Rein, president of the Citizens Budget Commission, a business-funded fiscal watchdog, said that while people won't "leave in droves tomorrow if taxes are raised," repeated increases "chop away at our competitive foundation over time."
Senate Minority Leader Rob Ortt said he sees no new momentum in the push, noting that groups make the same march to Albany every year. He and Hochul agree on at least one thing: income tax hikes are not the answer.
Notably, City Council Speaker Julie Menin — who leads the full 51-member body — did not sign the letter. In her inaugural address, she called for "universal child care, lowering skyrocketing health care costs, building more affordable housing, and slashing fines and bureaucratic red tape for small businesses," but has not publicly endorsed the Fair Share Act.
The state budget deadline is April 1. Assembly Speaker Heastie said he does not expect the tax debate to delay that deadline, expressing confidence that Albany and the city will reach a resolution.
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