Governor Kathy Hochul recently stated that New York should not increase taxes on high-net-worth individuals or the companies that drive job creation and revenue. However, her legislative record indicates a pattern of approving tax hikes since she took office.
During her time as governor, Hochul has supported or enacted multiple tax increases. These include a new pied-à-terre tax, changes to the state's tax code that decouple it from federal law regarding R&D costs, and extensions of the corporate franchise tax on larger businesses. Additionally, she raised the MTA payroll mobility tax on businesses in 2023 and implemented congestion pricing tolls in 2024, which affect vehicles entering Manhattan south of Central Park. Hochul also supported the 2021 income tax hike enacted under former Governor Andrew Cuomo, which significantly raised rates for high earners.
These actions contrast with her recent public statements. State spending has increased under her administration, leading to projected budget deficits in the coming years. The notes suggest that legislative bodies may seek to close these gaps through further tax increases, and that upcoming elections could influence her fiscal decisions.