New York City Mayor Zohran Mamdani’s latest effort to close a widening budget gap is intensifying concerns among business leaders, as his proposal to scale back a key tax credit threatens a broad range of companies that rely on it to remain competitive.
FOX Business’ Gerri Willis joined "Varney & Co." host David Asman to report on the proposal, which would reduce the pass-through entity tax (PTET) credit, used heavily by small- and mid-sized businesses, to help generate revenue for the city.
The PTET credit was introduced as a workaround to federal limits on state and local tax deductions (SALT) and has since become a financial lifeline for many businesses structured as S corporations and LLCs. Critics argue cutting it risks undermining those firms at a time when economic conditions remain uncertain.