Cuomo says New York tax hikes likely on the way, even if Congress approves aid
The Democrat governor said increases would be 'dramatic' without more funding
New York Gov. Andrew Cuomo said on Wednesday that income tax increases in the state were inevitable even if the government did dole out more coronavirus-related aid.
“You probably will see tax increases in any event,” Cuomo said during his press conference.
Cuomo had previously indicated tax hikes on the wealthy were on the table if the government failed to approve more funding for state and local governments.
The three-term Democratic governor said on Wednesday that the consequences would be “devastating” if Congress does not agree to provide aid, involving several thousand layoffs, increased fares and tolls and government borrowing.
Tax increases, in this scenario, could be “dramatic” and “would hurt families and hurt the economy,” Cuomo said.
NY GOV. CUOMO PROMISES INCOME TAX HIKES UNLESS FEDERAL AID IS APPROVED
He had previously asserted that tax hikes are largely a political issue rather than a financial fix, noting that it’s very “popular” to say “tax the millionaires.” He said the state is facing a $30 billion budget hole and raising taxes will not even come close to closing that gap.
On Wednesday he did not specify what or who specifically would be subject to increased rates.
Cuomo has been publicly hesitant to raise tax rates on New York’s wealthiest residents while New York Mayor Bill de Blasio has indicated he is more inclined to do so.
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The Democratic governor acknowledged that many of the state’s wealthiest residents had left because of the outbreak over the spring and summer months – noting that they had enough mobility to choose not to return.
Cuomo, however, has been pressing the federal government to dole out more aid to the states – a request that has so far gone unfulfilled as lawmakers have been unable to find common ground on a stimulus package.
Spending on state and local governments has been one of the points of contention between Republicans and Democrats.