A 337.5% Corporate Income Tax?

That's What the Socialist Candidate for NYC Mayor Wants

Socialist Indian-American Muslim nepo baby Zohran Mamdani wants to apply corporate taxes to any corporation doing business in New York state regardless of where that company is located. That would be a radical change as right now corporations only have to pay corporate income taxes in the state where they are incorporated (often in Delaware, more frequently now in Texas). Now as crazy as New York Democrats have been, I can’t see those in Albany being that insane but then it’s insane that someone running for mayor of what many consider to be the world’s greatest city and the global center of the world’s financial industry would be an open socialist.

“What I've proposed is that we raise $10 billion to pay for our entire economic agenda and start to Trump proof our city, because we know he'll use federal funding as leverage over this city. And we will do so in two key ways. The first is to match the state's top corporate tax rate to that of New Jersey. We are at 7.25%. They're at 11.5%. Corporations can pay it over there, they can pay it over here.

And the beauty of it is that it doesn't just apply to corporations headquartered in New York City, because when you say this, people will say, well, they're going to go to Florida. Wherever you are headquartered, as long as you do business in the state of New York, you are taxable for that corporate tax.

I realized that New Yorkers in general think that the world revolves around them, but does Mamdani really think that every company that does business in New York state realizes at least 7.5% (or 11.5% if he gets his way) of their total profits from NY? If they don’t, they’ll just stop doing business there.

Now I was a bit lazy and I let Grok.com do the arithmetic, but if every state that has a corporate income decided to implement Mamdani’s tax scheme, that would result in a total corporate tax rate of 337.5% for corporations doing business in all of those states. That comes out to 316.5% in state corporate taxes and then the normal 21% federal rate.

Do you think Mamdani even understands what a three hundred plus percent tax rate means? Actually, he probably does, since as a dedicated socialist he believes in confiscating your property. His property, of course would be special, just like the Politburo’s dachas outside of Moscow.

I really hope someone asks Mary Barra or Jim Farley if General Motors or Ford makes more than 7.5% of their profits in NY state and what they would do if NY implemented Mamdani’s proposal.

UPDATE: I asked Grok.com to estimate GM’s profits in New York state and then compare that to 7.5% of their total profits.

If New York State taxed GM at 7.5% of its total global profits ($14.9 billion), the tax liability would be approximately $1.1175 billion. This amount significantly exceeds GM’s estimated profits from sales in New York State, which range from $650 million to $780 million. Therefore, the tax would exceed GM’s profits in New York.