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flag NYC mayor proposes 50% estate tax with $750K exemption to close $5.4B gap, facing state pushback.

flag New York City Mayor Zohran Mamdani has proposed raising the state’s estate tax rate to 50% and cutting the exemption threshold to $750,000 to help close a $5.4 billion budget gap. flag The plan, part of broader fiscal measures, would expand taxation to more middle-class households, particularly those with home equity, and aims to generate significant revenue. flag While the proposal has drawn attention, it faces resistance from state leaders, including Governor Kathy Hochul, who warn that extreme tax increases could accelerate the departure of wealthy residents. flag The city’s credit outlook has been downgraded due to persistent deficits, and the estate tax overhaul remains under discussion without inclusion in official budget plans.

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