The huge amount of federal aid going to New York under the $ 1.9 trillion COVID-19 incentive bill eliminates the need for Albany to raise income tax or other levitation – unless the pols are just interested in “punishing the rich”, the city Head of the top business group said on Wednesday.
“ARP [American Rescue Plan]Catherine Wylde, CEO of the New York City Partnership, said, “With higher-than-expected income tax revenue, the state definitely closes the state and city budget gaps and raises taxes this year or next year.”
He said New York State and its residents would receive a total of $ 100 billion in federal aid – including $ 10 billion for education, $ 2.2 billion for rental assistance, grants for restaurants and Broadway, for small and minority-owned businesses. Includes debt forgiveness and funding for coronaviruses. Vaccine Delivery.
As important, the relief measures provide $ 6 billion in unrestricted aid to the city government and $ 12.6 to the state government to deal with the epidemic.
“We’re flush !,” Wilde told the Post.
“If the state works to raise taxes, it is a political statement intended to punish the rich – not a reflection of economic necessity.”
Before knowing how much federal aid Albany would receive, Gov. Andrew Cuomo proposed raising taxes at the rate of 8.82% for the top rate of 10.86% to the wealthiest New Yorkers, when he presented his budget plan in January. Good residents of New York City will pay a combined top state and local income tax rate of 14.7%, the highest rate in the nation.
Cuomo – who is reeling from sexual harassment and nursing home scandals – said Sunday that tax hikes are still on the table despite violations of federal aid.
“That’s on top of the table…. It’s the difference between $ 12.5 and $ 15 [billion]. And don’t get me wrong, $ 12.5 billion is very, very helpful. As you know, because I have said it a hundred and fifty times, in our opinion we needed $ 15 billion, ”said Cuomo.
Meanwhile a left-leaning coalition – consisting of Rep. Alexandria Ocasio-Cortez added America’s Democratic Socialists – pushing up to $ 50 billion due to tax hikes on wealthy and Wall Street investors.
Democratic lawmakers, who run both the state Senate and Assembly, are reviewing the federal epidemic relief package, and have not taken tax hikes off the table.
Liz Krueger (D-Manhattan), chairman of the Senate Finance Committee, said the Democratic convention had not yet taken the final place for taxes.
But many Democrats in the assembly said Albany should still raise taxes on the rich because federal aid only covers lump-sum spending incurred by the epidemic, and does not address state pressures, long-term needs, or a structural imbalance. -Shot federal incentive dollars disappear.
“We need to raise taxes on wealthy New Yorkers who are not paying their fair share. There is a tremendous backlog of needs. Our schools are in dire need of revenue to fund housing and health care, ”said Assemblyman Tom Abinanti (D-Nanuit).
Abinanti also said that a more stable state revenue base would reduce the need for local governments to raise property taxes.
Earlier this week, a spokesman for the majority of US Senate leader Chuck Schumer said the epidemic stimulus package wiped out the projected deficit of the New York government.
“Okay. @SenSchumer NYS budget shortfall for this year… ..Zero, nada, niete, zilch (NY Terms),” SUMMER REPRESENTATIVE Angelo Refero tweeted.
Critics said that Cuomo – engulfed in the scandal – is compromised and should resign instead of negotiating the budget.
Assistant Ron Kim (D-Queens), who has called for the governor’s impeachment, “Cuomo is asking for more time so he can use federal dollars and budgets with the Democrats.”
Cuomo said he would not resign and urged New Yorkers to wait for the results of the investigation by State Attorney General Letitia James of sexual harassment claims leveled against her by former employees.
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