A major local business coalition representing some of NYC’s largest employers said the city’s economic engine could sputter to a halt if City Hall moves forward with tax increases to help close a $5.6 billion budget deficit.
A new report from the Partnership for New York City, released on Monday, showed that its 300-plus member companies are currently the city’s biggest cheerleaders by supporting nearly 950,000 jobs and pumping $13.5 billion into the city and state, mostly through business, sales and other taxes.
However, that economic support system could collapse if current high tax proposals continue to advance through City Hall and Albany, the report revealed. The partnership’s report suggests that the Big Apple could lose nearly 2,800 jobs and $4.8 billion in annual GDP contributions over the next five years if taxes are increased.
“New York’s business community continues to play a major role in lifting the city and state economies,” said Steve Fulop, president and CEO of the partnership, and a former Jersey City mayor. “But under the high-tax proposals that are advancing through City Hall and the State Legislature, thousands of jobs and millions of dollars in tax revenue could be at risk.”
Big-name companies in NYC that could be affected by taxes targeting the wealthiest include Amazon, Google, IBM, a list of major banking and financial firms, retail and communications firms, and more.
Partnership members account for about one-third of New York City’s business income tax collections and over 36% of the state’s business income tax collections, funding public services, including education and transit, the report stated.
Mayor Zohran Mamdani has made clear his desire to tax the wealthiest New Yorkers to help fund his ambitious campaign promises, some of which have already come to life, including expanding free child care, a free bus system, city-run grocery stores and a rent freeze. Though he lacks the authority to raise income taxes on a city level, he pushed Albany lawmakers to do so.
Most recently, Mamdani, together with Gov. Kathy Hochul, announced the first pied-à-terre tax on luxury second homes in NYC worth more than $5 million. Supporters, including NYC Council Speaker Julie Menin, said the tax will help fund city-run programs; critics said it could hurt the local economy by pushing away wealthy New Yorkers.
amNewYork contacted the mayor’s office for comment on the new report and whether he has a response to its alarming findings; the newspaper is awaiting a response.
“This report should send a clear message: if New York wants to remain a global business capital, policymakers must support an environment that encourages growth, innovation, and job creation,” Fulop said.
Meanwhile, Mamdani made it clear in his preliminary budget announced on Feb. 17 that he would consider property tax increases on New York City owners across-the-board if Albany did not find a way to provide more tax revenue to the city.
“Increase personal income taxes on New Yorkers earning more than $1 million and corporate taxes on the most profitable corporations,” is listed as a “goal” in his February 2026 budget summary, while also listing a property tax hike as a “last resort.”
Mamdani’s official executive budget is expected to be released tomorrow, May 12. He and the City Council must agree upon a final budget by the June 30 deadline.
