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Taxing the Rich

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Christian Britschgi | 4.28.2026 9:30 AM

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Budget blues. New York City Mayor Zohran Mamdani and City Council Speaker Julie Menin have agreed to push back the May 1 deadline by which the mayor must issue an executive budget proposal, while the two figure out how to cover the city's $5.4 billion budget gap, reports Politico.

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Additionally, they are going to jointly call for more state budget aid and "change" to the state's pass-through entity tax (PTET) that will allegedly generate an additional $1 billion in revenue, reports The City's Katie Honan.

The announcement tomorrow with @nycmayor and @SpeakerMenin will be for more state aid through AIM, a change to PTET tax that should generate $1B, and a budget extender to go beyond May 1 Due to late state budget, per sources

— katie honan (@katie_honan) April 28, 2026

The details are a little complex, but the PTET is essentially a voluntary state tax that certain types of businesses can pay (which is then offset by state income tax credits given to the individual business owners) in order to reduce the business owners' federal tax liability.

According to a recent Manhattan Institute brief by E.J McMahon, almost everyone who benefits from the PTET is a millionaire income earner, which would explain why it would be a target for Mamdani.

The mayor campaigned on raising taxes on high-income earners and large corporations to pay for a raft of new........

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