This places New York in a major financial crisis and could take years to bounce back from!
New York Governor Andrew Cuomo warned of budget problems which come as the wealthy flee the state in droves.
As you might expect Cuomo blamed the Trump administration and the new tax plan for his woes, not the states high tax base, as Newsday reports:
Gov. Andrew M. Cuomo on Monday announced a dramatic drop in state income tax revenue of $2.8 billion, which he says will prompt him to revise his 2019-20 budget and reconsider spending on schools, health care and repairs to roads and bridges.
Cuomo, a Democrat, blamed the shortfall on a federal tax plan backed by Republican President Donald Trump. Cuomo said the law’s cap on deductions for state and local taxes at $10,000 was to blame and suggested it is, anecdotally, triggering high-earners to leave New York.
“At this point there is no doubt that the budget we put forward is not supported by the revenues,” Cuomo said at a State Capitol news conference. “It’s as serious as a heart attack.”
Cuomo said he’s not certain what areas might need to be cut, but said the biggest spending areas now are education, health care, infrastructure and another phase-in of a previously approved middle-class tax cut.
“I fear it’s going to get worse before it gets better,” state Comptroller Thomas DiNapoli said in a rare news conference with Cuomo. “It’s not all gloom and doom, but it’s a matter of very, very serious concern.” Tax revenues could rebound, he said, but he agreed with Cuomo that early indicators are not good.
Cuomo has until mid-February to submit amendments to his budget, which came in at $175.2 billion when he unveiled it Jan. 15.
The announcement also serves notice to the legislature, which for the first time in most of a half-century is controlled by Democrats.
The Democratic majorities in the Senate and Assembly have several proposals to add to the budget. Cuomo will no longer have Senate Republicans as an ally for fiscally conservative measures. The Republicans lost the majority in the November elections.
Who could have ever predicted that high taxes and penalizing success would drive out those you depend on to pay said taxes?
Maybe the governor will get the message that it’s time to cut taxes and make it easier to invest and do business in New York.
But I’m sure that is pure fantasy.
No Democrat in his right mind would ever agree to lower taxes. In fact Ocasio-Cortez and others in the Democratic party want to raise the top tax rate to 70%.
Cuomo wants to be president someday so he could never do anything as radical as reducing the tax burden of the citizens of New York.
Not since John F. Kennedy was President has there been a Democrat that understood lower taxes on the wealthy helps the poor.