Long Island, November 18, 2025
Officials and business leaders from Long Island are actively opposing the proposal to increase New York’s corporate tax rate from 7.25% to 11.5%. They argue that this hike could drive businesses out of the state and result in significant job losses. The proposed change aims to match the corporate tax rate of neighboring New Jersey, raising concerns about the potential negative impact on the region’s economy. Key local politicians have voiced their opposition, while the governor’s stance remains against increasing taxes during a time of affordability issues.
Long Island, NY – Leaders Oppose Proposed Corporate Tax Hike in New York State
Long Island officials and business leaders are strongly opposing a proposed increase in New York State’s corporate tax rate from 7.25% to 11.5%, expressing concerns that such a hike could drive businesses out of the state and lead to job losses.
Details of the Proposed Tax Increase
The proposal suggests raising the corporate tax rate to 11.5%, aligning it with neighboring New Jersey’s rate. For businesses earning $5 million annually, this would result in a tax increase from $362,500 to $575,000 for those operating outside New York City, and from $805,000 to $1,017,000 for those within the city.
Reactions from Local Leaders
Nassau County Executive Bruce Blakeman and other local officials argue that the tax hike could lead to an exodus of corporations and associated job losses, adversely affecting the region’s economy.
Background Context
Governor Kathy Hochul has expressed opposition to the proposed tax increase, stating that she does not favor raising taxes at a time when affordability is a significant issue.
Mayor-elect Zohran Mamdani has advocated for higher taxes on corporations and high-income individuals to fund ambitious social programs, including universal childcare and fare-free public buses.
Potential Implications
Opponents of the tax increase warn that it could harm New York’s status as a financial hub, potentially leading to reduced investment and economic growth.
Conclusion
The debate over the proposed corporate tax hike continues, with significant implications for New York State’s economic future and business climate.
Frequently Asked Questions (FAQ)
What is the proposed corporate tax rate increase in New York State?
The proposal suggests raising the corporate tax rate from 7.25% to 11.5%, aligning it with neighboring New Jersey’s rate.
How would this tax increase affect businesses?
For businesses earning $5 million annually, the tax increase would raise their tax liability from $362,500 to $575,000 for those operating outside New York City, and from $805,000 to $1,017,000 for those within the city.
What are the concerns of local leaders regarding this tax hike?
Local leaders, including Nassau County Executive Bruce Blakeman, argue that the tax hike could lead to an exodus of corporations and associated job losses, adversely affecting the region’s economy.
What is Governor Kathy Hochul’s stance on the proposed tax increase?
Governor Kathy Hochul has expressed opposition to the proposed tax increase, stating that she does not favor raising taxes at a time when affordability is a significant issue.
What are Mayor-elect Zohran Mamdani’s views on corporate taxes?
Mayor-elect Zohran Mamdani has advocated for higher taxes on corporations and high-income individuals to fund ambitious social programs, including universal childcare and fare-free public buses.
What are the potential implications of the proposed tax increase?
Opponents warn that the tax increase could harm New York’s status as a financial hub, potentially leading to reduced investment and economic growth.
Key Features of the Proposed Corporate Tax Hike
| Feature | Description |
|---|---|
| Proposed Tax Rate | Increase from 7.25% to 11.5% |
| Impact on $5 Million Revenue Business | Tax liability increases from $362,500 to $575,000 outside NYC; from $805,000 to $1,017,000 within NYC |
| Opposition | Local leaders and business officials express concerns over potential economic impact |
| Governor’s Stance | Governor Kathy Hochul opposes the tax increase, citing affordability issues |
| Mayor-elect’s Proposal | Mayor-elect Zohran Mamdani advocates for higher taxes to fund social programs |
| Potential Implications | Concerns over New York’s status as a financial hub and economic growth |
Now Happening on X
- @taxbuzzonline (Nov 17, 2025): Bloomberg and Reuters report that NY Gov. Hochul is considering raising corporate taxes from ~7.25% to 11.5% to fund Mayor-elect Zohran Mamdani’s agenda, potentially making New York one of the highest-taxed states for corporations. View on X
- @DogRightGirl (Nov 17, 2025): State corporate taxes in New York could increase from 7.25% to 11.5%, warning residents to prepare for the economic fallout as nothing comes free. View on X
- @morganfmckay (Nov 17, 2025): Partnership for NYC CEO Kathryn Wylde states that raising NY’s corporate tax would make the state uncompetitive, the highest-taxed in the country, and not a solution for affordability. View on X
- @goodtaxtakes (Nov 17, 2025): NYC Mayor-elect Mamdani’s plan to raise the corporate rate to 11.5% would result in a combined rate of about 19%, likely causing businesses to relocate and further straining the economy. View on X
- @StevenFulop (Nov 15, 2025): As NJ mayor and incoming Partnership for NYC CEO, Fulop calls the proposed corporate tax hike absolute suicide for NYC and a boon for NJ, predicting companies will leave despite any political spin. View on X
- @NiagaraAction (Nov 15, 2025): New York’s already poor business climate could worsen with an additional corporate tax burden, prompting more companies and jobs to exit the state according to employer warnings. View on X
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