New York Gov. Andrew Cuomo is gearing up to celebrate his favorite time of year, tax time! Cuomo says he will need more of New Yorkers’ money, despite residents there already living in the highest-taxed state in the country.
Cuomo said he hopes the state receives some money from a possible coronavirus relief package that’s currently being discussed in Congress. The money, however, would most likely not be enough to keep up with the state’s spending. “If Washington gives us some of it, then we’re going to have to redo a budget,” Cuomo said. “We’re going to have to raise taxes – I believe we’re going to have to raise taxes, at the end of the day, in any event. The question is, how much in tax?”
In October, state officials said revenues sank $13.5 billion due to the coronavirus and the restrictions put in place to control it. Currently, New York is projecting an $8.7 billion deficit for the upcoming fiscal year, which begins in April.
State officials in New York already point to the high tax rate as a major reason people are fleeing the state and say raising taxes even higher will only continue the escape from New York.
“New York is one of the highest-taxed states in the nation and raising taxes will result in the continuation of the exodus from this state,” State Senate Minority Leader Robert Ortt (R-Niagara County) said in a statement.
Payments to local and state governments have been a contentious issue in Congress as the two sides work toward another coronavirus relief package. Republicans feel the money would be a bailout to cities and states that have notoriously struggled to keep their budgets in order, and the money would be much better served being sent to small businesses that are being locked down and affected by the pandemic.