Chamber statement on City Council’s FY 2027 Preliminary Budget Response

 

APRIL 1, 2026

Today, Jessica Walker, President & CEO of the Manhattan Chamber of Commerce, issued the statement below regarding the New York City Council's Fiscal Year 2027 Preliminary Budget Response:

 

"The City Council got the biggest question right: a 9.5 percent property tax increase is unacceptable, and raiding the City's reserve funds is reckless. On behalf of the more than 125,000 businesses we represent, we commend the Council for drawing that line.

The Council also deserves real credit for doing the work. They identified $6 billion in re-estimates, efficiencies, and alternative resources — without cutting libraries, cultural institutions, or services for vulnerable New Yorkers. The focus on DOE contract reform, competitive bidding, pension re-amortization, and agency-level savings is exactly what responsible fiscal management looks like. More of this, please.

But we have to be honest about what is also in this document.

Reducing the Pass-Through Entity Tax credit from 100 percent to 75 percent is a billion-dollar tax increase on partnerships, professional services firms, and small business owners — the people who sign leases, create jobs, and keep our commercial corridors alive. Cutting the Unincorporated Business Tax credit for earners above $1 million may sound surgical, but it lands squarely on the law firms, medical practices, and architecture studios that are the backbone of Manhattan's economy.

You cannot champion fiscal discipline on page one and propose a billion dollars in new business taxes on page thirty. The Council's own logic should apply here: if a property tax hike worsens affordability and drives people out of the city, so does making it more expensive to run a business in it.

New York City is competing every single day with cities that are actively courting our businesses and our talent. We do not win that fight by taxing our way to stability. We win it by being a place where ambition is rewarded, not penalized.

There is a lot to build on in this budget response. We urge the Council and the Administration to pursue the strong ideas and leave the tax increases on the cutting room floor."