The new leader of a major New York City business organization expressed that it would be “completely suicidal” for Governor Kathy Hochul and state lawmakers to approve Mayor-elect Zoran’s suggested corporate tax increase.
“This plan is essentially a death blow for New York City and an absolute win for New Jersey,” remarked Jersey Mayor Stephen Fulop, who is set to take the role of CEO of the Partnership for New York City next year.
“As both New Jersey’s mayor and the future CEO of the Partnership, I struggle to imagine a clearer narrative to sway those supporting this initiative, whether politically or in governance. Even if one maintains that businesses won’t leave, one thing is clear: there will be no new job creation in New York City,” Fulop stated.
Hochul, a Democrat, is reportedly reconsidering her stance on tax increases as she aims for re-election next year, a significant pivot from her earlier promises not to raise other taxes.
Mamdani is advocating for an increase in the corporate tax rate from 7.3% to 11%, aiming for New York to leap from 17th to a tie with New Jersey at the top.
However, companies in urban areas also face payroll taxes and other fees that support the Metropolitan Transportation Authority.
“In politics, what really frustrates people is a half-truth, and this representation doesn’t capture the entire scenario. By raising New York City’s corporate tax to ‘match New Jersey,’ while ignoring the existing 8.85% surcharge in New York City, businesses would actually be looking at taxes exceeding 16%,” Fulop noted.
“It’s not merely a matter of competitiveness or being ‘slightly’ more expensive than our neighbors… Any rational person can recognize the reality of my argument,” he added.
Fulop’s pointed remarks illustrate his readiness to critique New York state taxes, even targeting a group that includes both the governor and the mayor-elect. It’s clear he feels strongly about the implications of these tax proposals on businesses.
In his defense, Fulop highlighted his record: “I was among the first in the nation to implement paid sick leave, advocate for raising the minimum wage, and prioritize workers’ interests. Even though I’ve managed eight out of eleven budgets without raising taxes and keeping expenses lower than inflation, I’m still being questioned here.”
“What I’m saying is straightforward: Any unbiased individual, regardless of political allegiance, would see that this proposal serves New Jersey’s interests. If this goes through, interest costs in New York City would soar far beyond those in most other regions — not just marginally higher but significantly so. This initiative is gaining traction due to political forces rather than its actual advantages,” he concluded.
