The incoming head of New York City’s leading business organization has issued a bold warning against Mayor-elect Zohran Mamdani’s proposed corporate tax hike.
Steven Fulop, who will soon lead the Partnership for New York City, described the plan as “economic suicide” and a potential disaster for the city’s job market. His criticism comes as Governor Kathy Hochul reportedly reconsiders her earlier stance against raising broad-based taxes.
Fulop’s Strong Opposition to the Tax Proposal
Fulop didn’t hold back when discussing the proposal to raise the state’s corporate tax rate from 7.3% to 11%. He said, “This proposal is absolute suicide for NYC and an absolute dream for NJ.” His argument centers on competitiveness, he believes the change would give neighboring New Jersey a massive advantage.
He noted that even if companies choose not to leave New York, they will likely stop creating new jobs within the city. According to Fulop, this approach could freeze economic growth and hurt thousands of small and mid-sized businesses already struggling to recover.
The Numbers Tell a Tough Story
If enacted, Mamdani’s plan would move New York from 17th to tied for first place with New Jersey for the highest corporate tax rate in the nation. However, the situation looks even worse when local taxes are included.
Fulop pointed out that city firms already face an additional 8.85% corporate levy, along with payroll taxes that fund the Metropolitan Transportation Authority. When combined, New York City companies would face a total tax burden exceeding 16%.
“That’s not competitiveness,” Fulop said. “That’s a clear disadvantage that discourages growth.”
Critics and Supporters Clash Online
Fulop’s comments sparked heated debates across social media, with some accusing him of abandoning progressive ideals. He quickly pushed back, reminding critics of his long record of supporting workers’ rights.
“I was among the first to pass Paid Sick Leave and fought for a higher minimum wage,” Fulop stated. “I’ve delivered multiple budgets without tax increases and kept costs below inflation. That experience gives me credibility here.”
Economic Growth or Political Gamble?
Fulop believes the proposed hike is driven more by politics than economics. He argued that any objective observer can see the plan’s risks. Raising corporate taxes so sharply, he said, would hand New Jersey a clear economic win while damaging New York’s reputation as a business hub.
As debates continue, one thing remains clear, New York’s financial future hangs in the balance. Decisions made in Albany over the coming months could reshape the city’s business climate for years to come, and leaders across both states are watching every move with keen interest.
