Nassau County Executive Bruce Blakeman spearheaded a press conference with Republican officials and business leaders in Mineola on Monday, Nov. 17, to speak out against a corporate tax hike reportedly being considered by Gov. Kathy Hochul, which is supported by New York City Mayor-Elect Zohran Mamdani.
Bloomberg first reported that. Hochul is mulling raising corporate taxes as part of broader efforts to close a potential budget shortfall and help fund some of Mamdani’s affordability agenda as New York City mayor, citing a person with knowledge of the matter.
Mamdani, who was elected as the city’s next mayor on Nov. 4, has said that he wants to raise the top state corporate tax rate to 11.5% from 7.25% to match New Jersey’s to pay for free buses and universal child care.
Blakeman said an increase in the state’s corporate rate would hurt businesses across New York.
“New York State is already the highest taxed state in the United States, and we are very concerned that this will drive more jobs out of New York State, that this will drive more businesses out of New York State, and that this will drive more residents out of New York State,” Blakeman said.
According to Blakeman’s office, the current corporate tax rate means that a business earning $5 million pays $362,500 in taxes to the state. That number increases $805,000 if the business operates in New York City.
If the tax rate were to rise to 11.5%, taxes would rise to $575,000 and $1,017,000 for out-of-city and in-city businesses, respectively, with $5 million in profits, Blakeman’s office said.
Blakeman said that an exodus of corporations and associated job losses will cause many smaller businesses to fold, which he said will lead to higher consumer prices.
He was joined at the press conference by Long Island business groups, who echoed Blakeman.
“The business community here has been stressed and punched in the gut numerous times, and here’s another tax,” Long Island Association President and CEO Matt Cohen said at the press conference. “This is not a Democratic or Republican issue. This is about what’s smart and what’s not smart, and this is not smart. It’s not good policy, it’s not good planning, and it’s really going to bite us in the end.”
Kyle Strober, the executive director of the Association for a Better Long Island, shared a similar sentiment, saying in a statement that the proposal would be “devastating” to Long Island’s economy.
“Recent demographic trends reveal that such a tax increase extension will only serve to drive away additional businesses and high-income earners, who pay the majority of the state’s tax revenue. When this occurs, the tax burden will be shifted to Long Island’s hard-working middle class,” he said.
A spokesperson for Hochul said the governor has given money back to New Yorkers and attacked Blakeman.
“Hochul cut middle-class taxes while putting inflation refund checks in New Yorkers’ pockets. Bruce Blakeman is the number one fanboy for Trump’s tariffs that are raising costs for families and making everything more expensive for small businesses – while the governor remains laser-focused on lowering costs, Blakeman’s shilling for Donald Trump’s tariff tax hikes,” the spokesperson said.
