Socialist New York City Mayor Zohran Mamdani warned Wednesday that it was time to increase taxes on the city's most affluent residents and successful corporations to fix a massive budget gap.

New York City Comptroller Mark Levine said earlier this month that the city will have a budget shortfall of $2.2 billion in fiscal year 2026 and $10.4 billion in the 2027 fiscal year.

"The time has come to tax the richest New Yorkers and most profitable corporations," Mamdani said during the town hall. "What we are going to do is exhaust every option to make it clear that the time has come to reset the relationship between the city, its wealthiest residents, its most profitable corporations and with Albany." 

The mayor also indicated that he was not worried if there is an exodus of corporations in the city and was more worried that residents would leave because the cost of living got too high, according to CBS News. 

The comment marks a potential clash with New York Gov. Kathy Hochul, a more moderate Democrat who is running for reelection and has already rejected tax hikes. Any tax change would need state approval.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.