Steven Fulop, the three-time mayor of Jersey City and incoming CEO of the Partnership for New York City, criticized Mayor-elect Zohran Mamdani’s proposal to raise the state’s corporate tax rate to match New Jersey’s 11.5%, warning that the move could have far-reaching economic consequences for the city.
“Any objective person can see this proposal is a gift for New Jersey,” Fulop emphasized, noting that the combined impact of New York State and New York City taxes would place businesses under a 16% or higher corporate burden. “That’s not competitiveness, that’s not ‘marginally’ more than neighbors…dramatically higher,” he added.
The proposal would increase New York’s corporate tax from its current 7.3% to a level comparable with New Jersey, which holds the highest corporate tax rate in the nation at 11.5%. Mamdani’s plan has prompted concerns among business leaders that higher taxation could discourage investment and job creation in New York City.
Fulop stressed that the impact would extend beyond large corporations. “Regardless of politics, any reasonable person can see they certainly won’t create a single new job in NYC,” he observed. Small and medium-sized businesses, many of which are already struggling under rising costs and relocating outside the city, could face added pressure.
The incoming Partnership for NYC head also highlighted that the commonly cited comparisons of corporate rates do not reflect the full picture. City firms already pay an additional 8.85% corporate tax on top of the state rate, a levy used to fund the Metropolitan Transportation Authority and other city services. Ignoring this component, he argued, misrepresents the potential burden on businesses.
“This proposal is absolute suicide for NYC and an absolute dream for NJ,” Fulop remarked, framing the plan as politically motivated rather than economically justified. He said his own record of partnering with labor and managing municipal budgets responsibly, asserting that his perspective is grounded in practical experience rather than ideology.
