Gov. Cuomo unveils budget plan, calls for tax changes
- Author: Eleanor Harrison Jan 19, 2018,
Jan 19, 2018, 1:43
The governor would continue the Regional Economic Development Councils for another year, giving them $750 million to divvy up across the state in a competitive exercise that critics have branded "the Hunger Games". "As I travel across my district, our state's taxes and cost of living are the top issues that concern residents", said Young (R-Olean).
Despite the fiscal peril the governor insists we face, today's presentation failed to make a commitment to actually reduce spending.
He cited the need for programming for senior citizens, economic development funds, the need to fix the region's crumbling infrastructure and continued investments in anti-opiate efforts as his top priorities. Families and businesses across NY should be wary of the term "revenue raisers" - which are unlikely to help their bottom line.
While the proposed budget does limit spending in some areas, makes modest spending increases in others and includes a few cuts here and there, it's fundamentally the same old shoe that New Yorkers have been chewing on for decades.
"As a result of decisions that were made in Washington with that tax bill, we really are facing a very, very difficult financial situation", says Assemblywoman Donna Lupardo, "And he appealed to us that we are going to have to work very hard to try and figure out how to mitigate these cuts". One idea would involve partially replacing the state income tax with a payroll tax as a way to respond to the capping of state and local tax deductions by the federal government.
Health insurers are expected to benefit from a decrease in the corporate tax rate under the new federal tax law that takes effect this year. Though there are many challenges now facing our state, I look forward to reviewing the Governor's proposals and working with my colleagues to find creative ways to address these challenges and ensure that New York's legacy remains one of strong educational opportunity, of social equality, and of vibrant economic promise.
$254 million: To implement the MTA Subway Action Plan to help pay for repairs to the New York City transit system.
The plan grows the $48 billion gap between what NY sends to Washington and what comes back in Federal spending, ultimately raising taxes, he said.
Gov. Andrew Cuomo and his partner Sandra Lee take part in the New Year's Eve inaugural ride on the new Second Avenue Subway on December 31, 2016 in New York City. Funding for the program would come in part from a new 2-cent per milligram tax on active opioid ingredients in prescription drugs.
Peoples-Stokes believes NY will remain committed to upstate investment.
The budget plan assumes that certain federal health care programs will continue to be funded, including the Children's Health Insurance Program, which federal lawmakers have yet to reauthorize.
"We are continuing to review the details of the Executive Budget proposal".
The budget does increase school aid - and provides billions in State support for higher education.
Instead, we got the same old NY budget. The latter would require the cooperation of neighboring states and potentially return $1 billion to the NY treasury in a given year, Cuomo said. He added that he will review the budget and listen to his constituents on how it may impact them. The state would need support from other states in the Northeast to close it, the governor said. Despite this, he proposed no such measure as bold as the payroll tax.
Cuomo also proposed deferring business tax credits for three years. Cuomo says instead of taxing income received by employees, the state would tax wages paid by employers to counter the loss of income deductibility. I can not help but question whether money will actually materialize and if the housing will ever be built. "Businesses will be able to deduct that difference from their federal taxes".