Rich fleeing New York, income of state dropping, that is what happens when Cuomo murders babies.
February 4, 2019 | 3:05pm | Updated
Cuomo announces income tax revenues
have dropped by $2.3B
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Gov. Andrew Cuomo announced Monday that state
income tax revenues plummeted by $2.3 billion since he introduced his new budget plan last month— a
bombshell that will force him to curb spending.
Cuomo attributed the revenue drop in December
and January largely to the new federal tax code, as well as volatility in the
stock market and other uncertainties.
“That’s a $2.3 billion drop in revenues.
That’s as serious as a heart attack. This is worse than we had anticipated,”
the governor said in Albany.
“This reduction must be addressed in this
year’s budget.”
In a rare joint appearance with Cuomo, state
Comptroller Tom DiNapoli confirmed the deteriorating finances.
“This is the most serious revenue shock the
state has faced in many years,” he said.
He urged Cuomo and the Legislature to sock
more money away in the state’s rainy day fund to prepare for the worst.
Cuomo had planned to spend $176 billion —
including about $100 billion in federal funds — in the new fiscal year that
starts on April 1.
Cuomo’s preliminary analysis claims much of
the impact is coming from a drop in revenues from the state’s highest income
earners most impacted by the loss of write-offs of state and local tax
deductions, known as SALT.
The federal law approved by President Trump
and the then-GOP controlled Congress limited SALT deductions to $10,000.
The loss of revenue from New York’s wealthiest
puts New York in a bind because the state relies on a progressive income tax
system that taxes the rich at a higher rate.
One percent of the state’s top income earners
provide 46 percent of the state’s personal income tax revenues, officials said.
Cuomo said Albany can’t go to the well and tax
the wealthy again because that would only worsen the situation, citing
“anecdotal” evidence that high-income New Yorkers are already fleeing the state
to lower-tax jurisdictions.
He offered no figures to back up the claim.
“I don’t believe raising taxes on the rich.
That would be the worst thing to do. You would just expand the shortfall,” he
said. “God forbid if the rich leave.”
