Mamdani warns NYC faces fiscal crisis ‘greater than Great Recession.’ His plan? Raise taxes on richest New Yorkers

Core Insights - The city is facing a significant fiscal crisis, with a projected budget shortfall of $2.2 billion for the current fiscal year and an anticipated gap of $10.4 billion for the next year, which Mamdani describes as a challenge greater than the financial fallout from the 2008 downturn [4][5]. Tax Proposals - Mamdani has proposed raising the city's income tax rate by two percentage points for residents earning over $1 million annually and increasing the corporate tax rate to match New Jersey's 11.5% [1][4]. Fiscal Management - Mamdani emphasized that addressing the fiscal crisis will require a multifaceted approach, including looking for savings and efficiencies, raising taxes on the wealthiest residents and most profitable corporations, and recalibrating the relationship with the state [2][4]. Political Context - Mayor Adams has defended his administration's fiscal management, asserting that it has received one of the strongest credit ratings in NYC history due to disciplined governance, while also acknowledging the scale of the current fiscal crisis [3][4].