New York City Mayor Zohran Mamdani has called for tax increases on the city’s wealthiest residents and most profitable corporations, warning that the city is facing a fiscal crisis on a scale greater than the Great Recession.
Speaking on Wednesday, Mamdani said New York is grappling with a budget deficit of at least $12 billion, blaming what he described as years of fiscal mismanagement under former mayor Eric Adams.
“I will be blunt. New York City is facing a serious fiscal crisis,” Mamdani said. “There is a massive fiscal deficit in our city’s budget to the tune of at least $12 billion. We did not arrive at this place by accident.”
Mamdani said the shortfall could not be addressed through spending cuts alone, arguing that efficiency measures would be insufficient to close a gap of this size.
“A $12 billion fiscal deficit cannot be resolved through efficiencies and savings,” he said. “Part of the solution will absolutely be interrogating every dollar the city spends, but that is only one part.”
The mayor said the city must also rethink its fiscal relationship with New York State and increase contributions from the wealthiest residents and corporations.
He argued that previous state-level decisions had shifted an unfair financial burden onto the city, particularly during the tenure of former governor Andrew Cuomo, and said restoring balance would be central to any recovery plan.
Mamdani said the scale of the crisis demands action on multiple fronts, including tax increases.
“We are speaking about a fiscal crisis at a scale greater than the Great Recession,” he said. “There will not be one single thing that can answer that crisis.”
He proposed an additional 2% income tax on the top 1% of New Yorkers, saying the city could both stabilise its finances and improve public services by asking more from those best able to afford it.
“In the wealthiest city, in the wealthiest country in history, we can put our city back on firmer financial footing and build a stronger city for everyone,” he said.
The comments increase pressure on Governor Kathy Hochul, who must approve any changes to state tax policy. Hochul, who is seeking re-election in November, has repeatedly said she does not support raising taxes.
The growing standoff highlights widening political divisions over how to address New York City’s budget gap, as officials weigh austerity measures against calls for higher taxes on the rich.
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A series of signals from Washington, including congressional testimony, a U.S. Embassy statement and a senior diplomat's visit to Tbilisi, has given Georgia's ruling party reason to declare a diplomatic reset. But Washington's message is more nuanced than Tbilisi is suggesting.
Afghan and Uzbek business officials have discussed ways to expand trade, ease transit bottlenecks and address customs challenges facing traders, according to the Afghanistan Chamber of Commerce and Investment (ACCI).
Armenia is set to receive a support package worth more than €50 million ($58.2 million) from the European Union (EU) after Russia, its largest trading partner, imposed restrictions on a range of Armenian exports.
As Armenia heads toward parliamentary elections on 7 June, the country's relationship with Azerbaijan is emerging as one of the defining issues of the campaign, with analysts and international observers highlighting the role of regional politics in shaping voters’ mindsets.
Severe Tropical Storm Jangmi brought heavy rain, power cuts and transport disruption across Japan on Wednesday (3 June) as it tracked towards the greater Tokyo region.
Police officers were pelted with missiles during violent clashes at a protest near the Southampton, UK, home of convicted murderer Vickrum Digwa, as anger continued to grow over the handling of the fatal stabbing of 18-year-old Henry Nowak.
Thousands of people have taken to the streets in Albania in recent days to protest against a luxury tourism project linked to Jared Kushner, the son-in-law of U.S. President Donald Trump, and his wife Ivanka Trump.
An Iranian drone and missile attack struck Kuwait International Airport early Wednesday, injuring several people, damaging Terminal 1 and forcing flight diversions, Kuwaiti authorities said.
Armenia’s parliamentary election comes at a defining moment for the South Caucasus, a region reshaped by the Garabagh conflict and broader shifts in Russia-West relations. The outcome is increasingly seen as a signal of Armenia’s future foreign policy direction and the regional balance of power.
China has criticised planned maritime boundary discussions between Japan and the Philippines, arguing that the waters involved fall within an area where Beijing claims maritime rights and jurisdiction.
U.S. President Donald Trump will attend next month's NATO leaders' summit in Türkiye, ending weeks of uncertainty over whether he would take part in a gathering expected to focus on the future of the alliance.
All 27 European Union (EU) member countries have agreed to begin the first set of talks with Ukraine and Moldova about joining the political and economic bloc.
Germany's foreign minister Johann Wadephul has suggested that Berlin's strong backing of Ukraine and its close ties with Israel may have contributed to its failure to secure a seat on the United Nations Security Council.
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