Hochul Stands Firm Against New Taxes Amid Budget Talks
POESTENKILL, N.Y. – Governor Kathy Hochul reiterated on Tuesday that she opposes any new tax increases while New York City leaders consider a proposal for new taxes on multimillion-dollar vacation homes.
“It doesn’t sit well with me,” Hochul mentioned to the Post when questioned about potential tax hikes amid ongoing delays in national budget discussions.
This comes as major unions and progressive groups have urged legislative leaders in a letter to intensify their efforts for higher taxes, not backing down.
The letter, signed by groups including the 37th District Council, the Hotel and Gaming Trades Council, and the Democratic Socialists of America of New York City, calls on Hochul to listen to the majority who favor a fairer tax system over affluent donors who benefit from the current structure.
Hochul had previously been hesitant to address calls from Mayor Zoran Mamdani and his “tax the rich” advocates, but last week, she introduced a new pied-à-terre tax aimed at generating $500 million annually to address a significant budget shortfall.
On top of that, she has allocated $1.5 billion for city relief, alongside additional funding for childcare programs.
However, she clarified that her comments about new taxes were more about empowering city councils and Mamdani to address the fiscal gap themselves.
“They’re figuring it out, and we’re working with them to manage costs for New York City government. That needs to keep happening,” Hochul stated.
She did express openness to other budget proposals aimed at reducing expenses.
Changes to classroom structure laws affecting New York City schools have also been mentioned, potentially impacting future school budgets.
“If legal changes are necessary to control expenses related to the state, we will certainly explore that,” Hochul added.
Council President Carl Heastie (D-Bronx) noted that he remains open to tax increases but is currently waiting for a consensus in the Legislature on the city’s budget, which two parties have vastly different estimates on.
“He claims it’s $5.4 billion. The City Council put it at zero. I suspect the truth lies somewhere in between,” Heastie remarked, suggesting that finding common ground is the first step forward.
Meanwhile, Jackie Bray, one of Hochul’s top advisors, indicated during a forum that the pied-à-terre tax might mark the end of significant efforts to generate more revenue in this budget.
Still, he acknowledged, “Will there ever be an end to the discussions about tax increases? Probably not.”
