GOP Leader Warns Corporate Tax Increase Would Harm New York Economy
EXCLUSIVE: As Nassau County Executive Bruce Blakeman considers a run for governor, he is publicly warning that reports Gov. Kathy Hochul is weighing a corporate tax increase would amount to a "tax on the middle class" and could undermine New York's economic recovery.
Blakeman said he will decide "very soon" whether to pursue higher office while traveling across the state to gauge whether he has the "support to get to the next level." Meanwhile, reports in Politico and other outlets say Hochul is exploring ways to close the state's budget gap, including a possible corporate tax increase to fund parts of Mayor-elect Zohran Mamdani's progressive agenda.
"This is a tax on the middle class," Blakeman told Fox News Digital. "It will make things less affordable. It will drive up inflation, and it will make New York less competitive. Corporations are already leaving our state in record numbers. Jobs are leaving our state. People are leaving our state. This corporate tax increase will drive more high net-worth individuals and corporations out of New York State and will be an economic disaster."
Kyle Strober, executive director of the Association for a Better Long Island (ABLI), told Fox News Digital that raising the corporate tax could be "potentially devastating" for Long Island's economy. Strober noted Long Island's close economic ties to New York City and pointed to existing challenges such as high taxes, high living costs, and limited housing supply that already push employees and employers out of the region.
"A corporate tax hike would only serve to drive away additional businesses and high-income earners, who pay the majority of the state’s tax revenue," Strober said. He warned that when businesses and wealthy taxpayers leave, the remaining tax burden shifts to middle-class residents—contradicting Albany leaders' stated aim of making New York more affordable.
The ABLI previously led opposition efforts in 2021 and 2025 against proposals to raise taxes on the top 1% and to increase the corporate tax rate. Mayor-elect Mamdani campaigned on taxing the top 1% and on raising the state corporate tax from 7.25% to about 11.5%—a level comparable to New Jersey. Any such changes would require legislative action in Albany and the governor's approval.
Although Gov. Hochul endorsed Mamdani after he secured the Democratic nomination, she has publicly said she will not raise taxes on the top 1% of earners. Her campaign spokesperson, Sarafina Chitika, told Fox News Digital that Hochul has "cut middle-class taxes while putting inflation refund checks in New Yorkers’ pockets," and accused Blakeman of backing Trump-era tariffs that raise costs for families and small businesses.
Blakeman has strongly criticized Mamdani’s platform, calling the mayor-elect an "avowed social democrat" and accusing him of being "anti-business" and out of step with what Blakeman describes as "American values." He argued that policies such as free bus rides and higher taxes would harm both New York City and neighboring communities, including Nassau County.
Since his re-election as Nassau County executive, Blakeman said business and political leaders have encouraged him to run for governor. Meanwhile, Rep. Elise Stefanik (R-N.Y.) has already launched a gubernatorial campaign and secured endorsements from state GOP leaders and numerous county chairs.
What’s at stake: The debate over corporate tax policy highlights broader tensions in New York politics between fiscal-conservative concerns about competitiveness and the progressive push to expand public services—an issue likely to shape both statewide policy and the 2026 gubernatorial race.
