Hochul Blames Trump for Tax Hikes, Faces Pressure from Progressives
Governor Kathy Hochul is gearing up to potentially raise corporate taxes in response to ongoing demands from the left, particularly from Zoran Mamdani, New York’s democratic socialist mayoral candidate. She has pointed a finger at former President Trump for creating the circumstances that necessitate these tax increases.
Hochul is under fire from liberal factions, which includes chants of “tax the rich” directed at her, as they seek to associate her with Mamdani. He’s advocating for an additional $9 billion in funding for ambitious initiatives like universal child care and free public transportation.
The governor remains firm in her commitment not to raise income taxes—a demand from Mamdani—yet she’s open to the idea of increasing corporate taxes as the state grapples with its budget. “There’s chatter about taxes given the upcoming elections,” she stated during a recent news conference. “But this isn’t just about the recent elections; it’s about 2024, with Trump being a wildcard, and our situation is pretty chaotic.”
Despite a significant 22% rise in state spending during her tenure, Hochul attributes the need for increased revenue to federal government actions. “The expenses have increased because of Trump, plain and simple. We need some flexibility here,” she remarked.
“Honestly, I can’t anticipate how next year will unfold with the Trump administration still looming,” she added, highlighting her uncertainty.
Her remarks followed earlier comments to FOX 5, where she clarified that there haven’t been any current discussions regarding raising individual taxes, emphasizing that both income and corporate tax increases require state approval.
“My intention is not to raise income taxes; I want New York to be more affordable and to encourage successful individuals to invest and create jobs here. But we must explore additional revenue sources,” she stated during her FOX 5 interview.
The latest estimates suggest New York’s budget for this year could hit around $259 billion. However, projections indicate that starting in 2027, the state might lose approximately $4 billion annually due to cuts to Obamacare subsidies and other effects stemming from Trump’s recent legislative actions.
To address a $750 million shortfall this year, Hochul claimed to have found “efficiencies,” while also revising tax revenue projections upward by $2.6 billion.
As Hochul prepares for her re-election bid next year, she’s facing intense pressure from supporters of Mamdani and other progressive groups, potentially setting the stage for a primary challenge.
Highlighting broader challenges, Anna Champenney from the Citizens’ Budget Committee remarked that “the erosion of federal support poses a significant threat just beyond New York City, among other issues like housing affordability and climate change.” She underscored the need for the state to better manage its finances to support New Yorkers effectively.
