Mamdani warns NYC faces fiscal crisis ‘greater than Great Recession.’ His plan? Raise taxes on richest New Yorkers

Moneywise and Yahoo Finance LLC whitethorn gain committee oregon gross done links successful the contented below.

Just 4 weeks aft being sworn successful arsenic New York City’s mayor, Zohran Mamdani delivered a stark informing astir the city’s finances — 1 helium said rivals the worst downturn successful caller memory.

“I volition beryllium blunt. New York City is facing a superior fiscal crisis,” Mamdani said astatine a property league connected Jan. 28 (1). “There is simply a monolithic fiscal shortage successful our City's fund to the tune of astatine slightest $12 billion.”

• Thanks to Jeff Bezos, you tin present go a landlord for arsenic small arsenic $100 — and no, you don't person to woody with tenants oregon hole freezers. Here's how

• Build a portfolio of the world’s champion backstage tech companies and marque it accessible to everyone — that’s the ngo of Fundrise Venture Capital. You tin commencement investing contiguous with conscionable $10

• Dave Ramsey warns astir 50% of Americans are making 1 large Social Security mistake — here’s what it is and 3 elemental steps to hole it ASAP

Mamdani squarely blamed his predecessor, erstwhile politician Eric Adams, for the shortfall.

“We did not get astatine this spot by accident,” helium said. “This situation has a sanction and a main architect. In the words of the Jackson 5, it's arsenic casual arsenic A-B-C. This is the Adams Budget Crisis.”

The informing follows caller figures from New York City Comptroller Mark Levine, who said the metropolis is facing a $2.2 cardinal fund shortfall successful the existent fiscal year, on with a projected $10.4 cardinal spread successful the adjacent (2).

Mamdani described the concern successful dire terms, arguing that the standard of the situation eclipses adjacent the fiscal fallout from the 2008 downturn.

“We are speaking astir a fiscal situation astatine [a] standard greater than the Great Recession,” helium said (1).

Adams rapidly pushed back, rejecting the assertion that his medication near the metropolis successful fiscal distress.

“Bond raters gave my medication 1 of the strongest recognition ratings successful NYC past due to the fact that we governed with discipline, not phantasy economics,” Adams wrote connected X (3).

To adjacent the gap, Mamdani said the metropolis cannot trust connected a azygous fix.

“There volition not beryllium 1 azygous happening that tin reply that crisis,” helium said (1). “It volition necessitate america to prosecute each azygous avenue. That means looking inward into savings and efficiencies. That besides means raising taxes connected the wealthiest New Yorkers and the astir profitable corporations. And it means recalibrating the narration with the state.”

During his campaign, Mamdani projected raising the city’s income taxation complaint by 2 percent points connected residents earning much than $1 cardinal annually, on with expanding the firm taxation complaint to lucifer New Jersey’s 11.5% (4).