The Budget Is Late, But Not Done Yet — Gov. Hochul Can Still Side With the Working Class and Tax the Rich

Unions, legislative champions, advocacy groups and New Yorkers facing loss of services demand a budget that makes the ultra-wealthy pay their fair share

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Albany, NY — Gov. Kathy Hochul must finalize a budget that makes New York’s ultra-rich pay their fair share in order to prevent hundreds of thousands of constituents from losing food and healthcare benefits and to meaningfully invest in an affordability agenda, a growing coalition of New Yorkers warned during a press conference Tuesday as negotiations dragged on. 

More than two dozen state elected officials joined labor unions including CIR/SEIU and PSC/CUNY; advocacy organizations including Alliance for Quality Education, Columbia County Sanctuary Movement, CUNY Rising Alliance, For the Many, Invest in Our New York, Jews for Racial & Economic Justice, Make the Road New York, New York Working Families Party, NYC-DSA, Strong Economy for All Coalition and VOCAL-NY; and New Yorkers personally facing the loss of their essential services to highlight the urgency of raising progressive revenue in this year’s budget. Deep federal cuts put 1 million New Yorkers at risk of losing their Medicaid or Essential Plan coverage and 200,000 in danger of losing SNAP benefits. New Yorkers upstate and downstate struggle to afford groceries, rent and particularly childcare.

Gov. Hochul is increasingly isolated in her opposition to raising taxes on the wealthiest New Yorkers. A powerful and diverse coalition — labor unions representing more than 300,000 workers statewide, Senate and Assembly leadership, majorities of New York voters and even some millionaires — agrees that the very rich should pay what they owe in taxes to save essential services and fund truly universal childcare statewide.

In a sign of the collective pressure our movement has built and the widespread popularity of taxing the rich, the governor recently proposed a pied-à-terre tax on luxury second homes in New York City. While this is a step in the right direction, the estimated $500 million it would raise annually is nowhere near enough to fill the city’s $5.4 billion shortfall or replace the billions of dollars Donald Trump stole from New York. And it does nothing to address the budget crises facing the rest of the state, particularly upstate counties.

The governor must also go far beyond reducing New York City’s pass-through-entity tax (PTET) credit, as Mayor Zohran Mamdani and City Council Speaker Julie Menin proposed today, and adopt all progressive revenue raisers included in the Senate and Assembly one-house budget proposals.

The budget may be late, but it’s not done yet. Gov. Hochul still has a chance to stand with working-class New Yorkers and deliver real affordability — instead of defending her billionaire donors and their precious tax breaks.

“With her pied-à-terre tax proposal, Gov. Hochul has shown she’s responsive to pressure from our coalition. Now, we need her to think more ambitiously,” said Brahvan Ranga, campaign manager for Invest in Our New York. “The vast scale of federal cuts and our deepening affordability crisis requires that we raise billions, not millions, in progressive revenue. Will the governor side with labor unions and the majority of New York voters, wielding her power to transform the lives of working-class people and make the ultra-wealthy pay their fair share? Or will she cave to her billionaire donors and go down in history as another forgettable corporate Democrat?” 

“We are calling for state legislators and Governor Hochul to include the four revenue raisers that make up the Invest in Our New York package in this year’s budget NOW!” said Dawedo Sanon, community organizer at the Columbia County Sanctuary Movement. “This is common sense legislation that will ensure all New Yorkers and their livelihoods remain protected from federal funding cuts and political spectacles. Everyday New Yorkers pay their fair share in taxes, and so should the ultra-wealthy who live and do business in our state.”

“The consensus in upstate New York is clear: Taxing the rich is the only way out of the terrible budget crisis upstate cities and counties are facing,” said Xaver Kandler, Political Director at For the Many. “Dozens of upstate lawmakers have signed onto a letter to tax the rich. Both houses of the legislature want to tax the rich. So do 71% of all New Yorkers. The only person who doesn’t want to raise taxes on billionaires — besides the billionaires themselves — is Kathy Hochul. When is Governor Hochul going to start listening to her constituents or fellow state leaders? It’s time for her to stop holding the state budget hostage and tax the rich now." 

PSC/CUNY President James Davis said, "A pied-à-terre tax on penthouse mansions is a start, but it will not generate revenue statewide to protect healthcare access and food assistance, let alone close the city’s budget deficit or fund the investments in affordability that New Yorkers need. Only statewide, progressive tax reforms that will make the wealthiest corporations and the richest among us pay their fair share of taxes. The budget is late, but there is still plenty of time for Governor Hochul, Majority Leader Stewart-Cousins, and Speaker Heastie to heed the majority of New Yorkers and do the right thing in this budget: Tax the rich!”

“Communities around this country are being starved of resources because of Donald Trump‘s tax cuts for the rich. It is the role of blue states like New York to step into the breach and recuperate that lost revenue so that vital government services are preserved and working-class people do not continue to be left to pick up the tab,” said Cynthia Nixon, an activist, actor and lifelong New Yorker. “Which side are you on, Kathy Hochul? It’s time to really tax the rich.”

"In the district I represent in the Bronx, working families are stretched thin as they struggle to pay for rent that keeps rising, healthcare that is always in jeopardy, and food that grows more expensive each day. Though the governor’s pied-à-terre tax is a step in the right direction, it’s important we don’t forget that $500 million is not enough when our communities are facing billions in need. We need a budget that raises billions in revenue by making the wealthiest New Yorkers and corporations pay their fair share, so we can protect essential services and finally deliver an equitable way of life for all New Yorkers,” Assemblymember George Alvarez said.

Senator April Baskin said, “In a state with as much wealth as New York, it is unacceptable that working families struggle daily to make ends meet while those at the top continue to contribute too little. By making the ultra-wealthy and most profitable corporations pay their fair share, we can protect essential programs like SNAP, Medicaid, and the Essential Plan, and finally deliver universal childcare across our state. At a time when working people across the United States are facing an affordability crisis and uncertainty from federal cuts, New York must lead the way in building a more equitable tax system where everyone thrives — not just the wealthy few.”

"Investing in our New York is just that — investing in us. For far too long, there has been too great a burden placed on those who can least afford it. We need to provide reasonable and reliable funding for critical programs such as universal childcare, universal pre-K, health programs for underserved New Yorkers, and food pantries. This isn’t about overtaxing the wealthy, it’s about making sure that corporations and the ultra-wealthy start paying their fair share. Ultimately, this will benefit all New Yorkers,” Assemblymember Chris Burdick said.

“Making daily life more affordable for everyday New Yorkers requires bold action, and Invest in Our New York is leading the charge to improve the livelihoods of communities across the state,” said Senator Jeremy Cooney. “I’m proud to join them in their mission and make sure we’re meeting the needs of all New Yorkers.”

“New Yorkers are facing real consequences if we fail to act, families losing healthcare, food assistance, and the support they rely on every day. We cannot accept that,” said Assemblymember Manny De Los Santos. “This moment calls for bold leadership and real investment, because our communities deserve better. The resources are there, and it is time to generate the billions, not millions, needed to protect our families and strengthen our communities. That means asking the ultra-wealthy and the most profitable corporations to pay their fair share. This is about choosing people over profit and delivering a budget that truly reflects the values and needs of New Yorkers.”

Senator Kristen Gonzalez said, “New Yorkers should have the basic necessities to live in this city — food, healthcare, and affordable housing. The proposed pied-à-terre tax, while a step forward, falls short in raising the revenue needed to maintain essential services and benefits. I urge Governor Hochul to support measures like my bill, the Corporate Fair Share Act (S9189A), to adopt a fairer tax system that better reflects the capacity of the wealthiest New Yorkers to contribute.“

“New York is facing a defining moment that demands bold and equitable solutions to our affordability crisis and budget challenges. We cannot continue relying on half-measures while working families struggle to access healthcare, put food on the table, and afford the basics,” said Assemblymember Jessica González-Rojas. “The path forward is clear: We must ensure the ultra-wealthy and most profitable corporations are paying their fair share. By raising progressive revenue, we can protect critical programs like Medicaid and SNAP, and make real investments in universal childcare and other essential services. It’s time to invest in our New York by building a tax system that works for everyone, not just the ultra-wealthy.”

“The governor’s pied-à-terre proposal acknowledges what New Yorkers have been demanding: Those with extraordinary wealth must contribute more fairly to the city and state from which they profit. But this moment demands broader and bolder action,” said Senator Robert Jackson. “At a time when working families are being asked to brace for deeper hardship, the ultra-wealthy and the most profitable corporations cannot continue to receive windfalls while public needs go unmet. Progressive revenue is not merely a fiscal tool; it is a test of our governing values. New York must choose a budget that protects people, strengthens our public institutions, and keeps dignity within reach for every family.”

“Our hardworking families deserve a New York that they can actually afford, and with this budget we have a chance to give it to them,” said Assemblymember Grace Lee. “I’m proud to stand with the Working Families Party, our labor unions, and the majority of New Yorkers, to say that it’s time we make the ultra-wealthy and largest corporations pay their fair share. The people, corporations and institutions that can do more, should pay more.” 

"As a result of Trump's Big Ugly Bill, we have hundreds of thousands of residents who are losing healthcare coverage and food assistance while a tiny handful of New Yorkers pocket a windfall,” said Assemblymember Dana Levenberg. “We must step up and do what's best for our residents by asking those who have benefited the most from this state's resources to pay their fair share of taxes and help their fellow residents. A majority of New Yorkers are demanding this. Let's get on the right side of the numbers — financially and politically — by passing a final budget that increases taxes on the ultra-wealthy individuals and corporations."

“New York is one of the wealthiest states in the nation, yet we are home to the deepest economic inequality. For too long, our state’s budget has been balanced on the backs of working families in Rochester and across New York while the ultra-wealthy and giant corporations enjoy record-breaking profits and federal tax handouts. We are told there isn't enough for universal childcare, affordable housing, or our schools, but the truth is, there is a scarcity of political courage, not a scarcity of resources,” said Assemblymember Demond Meeks. “By passing the Invest in Our New York package, we choose to fund our future instead of protecting billionaires. It is time to make the super-rich pay their fair share so every New Yorker has the foundation they need to thrive.”

“New York is one of the richest places in the world, yet working families are struggling to afford rent, childcare, and basic necessities. That’s a result of policy choices,” Assemblymember Marcela Mitaynes said. “Taxing the rich is about fairness. If the ultra-wealthy pay what they owe, we can invest in the housing, childcare, and services our communities need. I’m calling on the governor to include meaningful tax increases on the wealthiest New Yorkers in the final budget. It’s time our tax system works for the people who keep New York running.”

“Taxing the rich and corporations to fund programs that working class people rely on isn’t just morally right; it’s necessary to avoid gutting these programs. My NYC corporate tax bill (A10340A) and the rest of the Invest in Our New York package is the only way to close the state and city budget gaps without cutting services. There is no alternative: Governor Hochul must tax the rich,” said Assemblymember Diana Moreno.

Assemblymember Steven Raga said, “Working families should not be forced to pay the price for federal cuts while billionaires and big corporations walk away with more tax breaks. A pied-à-terre tax is a start, but it does not come close to meeting the scale of this crisis. New York has the resources to protect healthcare, food assistance, childcare, and essential services. What we need now is the political will to tax the ultra-rich and invest in the people who keep this state running.”

“While Governor Hochul’s proposed pied-à-terre tax is an important first step, our state must do more to make New York a great place to live for all New Yorkers, not just the ultra-wealthy. New York is home to the highest concentration of wealth in the country yet our tax system coddles them while making working class New Yorkers foot the bill,” said Senator Gustavo Rivera. “Given the affordability crisis and budget shortfalls our state is already facing, we need to make every effort to raise more revenue and make the billionaires and corporations pay their fair share.”

"Thanks to Donald Trump's disastrous spending bill, 1 million New Yorkers are slated to lose their Medicaid or Essential Plan coverage and 200,000 may soon lose the SNAP benefits they rely on to put food on the table," said Assemblymember Linda B. Rosenthal. "But, it doesn't have to be this way. We can head off federal funding cuts by passing a state budget that makes the wealthiest New Yorkers and corporations pay their fair share in taxes. The majority of New Yorkers are in support of progressive tax increases, and we know that these bills could generate billions of dollars for our state. Imagine: We could deliver universal childcare, affordable healthcare, continued SNAP benefits and other services that the Trump administration is trying to take away."

“New Yorkers have made themselves clear: A small tax on luxury second homes is not enough. While the governor’s proposal reflects the pressure working people have built to finally tax the ultra‑rich, it leaves the rest of the state behind and raises only a fraction of what’s needed to confront a $5.4 billion deficit and devastating federal cuts. The final budget must include the progressive revenue in the one‑house budgets so we can protect Medicaid and the Essential Plan for a million New Yorkers, prevent 200,000 people from going hungry, and raise the billions required to address the affordability crisis with truly universal statewide childcare. Albany must stand strong and ensure the wealthiest individuals and corporations pay their fair share,” said Senator James Sanders.

“As the legislature continues to craft a state budget that reflects the needs of the people, we must prioritize revenue streams to fund much-needed programs and services for communities like the ones I represent,” said Senator José Serrano. “It is important that we support progressive revenue proposals that would have the wealthiest individuals and most profitable corporations pay their fair share, allowing the state to strengthen essential services and continue investing in our communities.”

“Billionaires are getting richer while working families are being asked to do more with less. The governor’s pied-à-terre proposal is a start, but it falls short of what’s needed to close the looming budget gaps and protect essential services across New York. By asking the ultra-wealthy and most profitable corporations to pay their fair share, we can safeguard healthcare, prevent devastating cuts, and deliver on priorities like universal childcare,” said Assemblymember Jo Anne Simon.

“Gov. Hochul needs to read the room. The majority of New Yorkers, along with the state Senate and Assembly, want to make the ultra-rich pay their fair share in taxes,” said Assemblymember Phara Souffrant-Forrest. “With hundreds of thousands of New Yorkers facing cuts to their food and healthcare assistance, we must ensure that the wealthiest among us, not the working class, absorb the blow from federal cuts. It’s time to finalize a budget that prioritizes the needs of working New Yorkers, not billionaires and oligarchs.”

“New York cannot kick the can down the road. We need a reliable, consistent stream of revenue rather than evaluating everything based on the budget of the moment, especially when cuts in federal assistance are looming. Proposals like taxing second homes in New York City may generate about $500 million, if that tax is not avoided, but that is a fraction of what is needed and does nothing to support communities outside of New York City. We must pursue broader, more equitable solutions. Reinstating the stock transfer tax, which NY state had from 1905 to 1981, at just one tenth of one percent (.1%) would generate an estimated $14 to $16 billion annually, providing the revenue necessary to protect critical services, strengthen our fiscal stability, and ensure that those who have benefited the most from our economy contribute their fair share. STT has the advantage of taxing primarily residents of other states and other nations, like Texas does when it taxes oil products that are used in NY. Further, it is a sales tax which Wall Street firms collect but do not pay. The claim that Wall Street will move is mythical,” said Assemblymember Phil Steck.

“Gov. Hochul must get serious about pushing back on Trump’s disastrous policies by raising taxes on the rich to protect essential programs and services. The pied-à-terre tax is not enough,” said Assemblymember Claire Valdez. “Taxing the rich is common sense, it’s popular across the political spectrum, and, in the richest city in the history of the world, it’s a moral imperative. Anything less is a sign-off on Trump’s priorities and budget and a betrayal of working-class New Yorkers.”

Senator Lea Webb said, “Too many New Yorkers are struggling to make ends meet and keep up with the rising cost of living. New York must step up to protect our communities by passing a budget that raises billions in new revenue by ensuring the ultra-wealthy and large corporations pay their fair share. We cannot balance our budget on the backs of working families.”

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