New York Mayor Proposes Wealth Tax to Address $12 Billion Budget Shortfall
Mayor Zohran Mamdani has called for increased taxes on high-income residents to close New York City's widening budget gap, now projected at $12.6 billion over the next two fiscal years. The first-term Democrat attributes the crisis to fiscal mismanagement by previous administrations, including former Mayor Eric Adams and ex-Governor Andrew Cuomo.
The city faces a $2.2 billion deficit for fiscal 2026 against a $116 billion budget, with the shortfall ballooning to $10.4 billion the following year. Mamdani's plan combines spending cuts with revenue increases, criticizing prior wasteful expenditures including unspecified artificial intelligence initiatives.
City Comptroller Mark Levine's recent financial disclosures confirm the severity of the fiscal challenge, which surpasses the Great Recession's impact. The administration pledges transparency about financial realities previously undisclosed to taxpayers.
