New York Governor Andrew Cuomo proposes a $168 billion spending plan to Defend New York Against Trump’s ‘Economic Missile’.
Gov. Andrew M. Cuomo on Tuesday unveiled a $168 billion spending plan that he said held echoes of the darkest days of the recession, necessitating a raft of ideas to raise revenue and counter a new federal tax plan that he warned could devastate some taxpayers.
“Washington hit a button and launched an economic missile and it says ‘New York’ on it, and it’s headed our way,” Mr. Cuomo said. “You know what my recommendation is? Get out of the way.”
Central to that escape plan is a proposal to create a statewide payroll tax on employers that could effectively eliminate the state income tax on wages for many employees.
Parallel System
Details on what a payroll tax would look like remained scant on Tuesday, with the governor and the state’s top budget official promising more information on Wednesday. But they seemed to envision a two-tiered process by which businesses could opt in to a payroll tax alternative, rather than a wholesale replacement of the income tax. The government might first designate certain categories of businesses eligible for the swap, and then those businesses could choose whether or not to participate, said Robert Mujica, the director of budget.
“We’ll run two parallel systems,” he said. “If there’s a desire not to make any of these changes, then you wouldn’t participate in the system.”
Mr. Cuomo conceded that the tax plan would be complicated but he pleaded with legislators on both sides of the aisle to embrace his plan for the state’s financial future.
The parallel system is a joke. It is guaranteed to backfire one way or another.
- It will stifle businesses with complications
- Only those businesses that will pay less tax will opt in
Other Plan Ideas
- Opioid Tax: A 2 cents-per-milligram surcharge for the active opioid ingredient in prescription drugs.
- “Internet Fairness Conformity Tax: A holdover idea that would require so-called “marketplace providers” like Amazon.com to collect sales tax.
- Carried Interest Tax: Cuomo reiterated a call for the closure of the carried interest loophole, a federal tax that allows some hedge fund managers to pay a lower tax rate on revenue from investments.
- A 3 percent increase in education funding, the largest chunk of state spending.
- An “Action Plan” for the MTA: $254 million for the Metropolitan Transportation Authority. This would be money taken from financial settlements and the accelerated transfer of funds from a tiny payroll tax paid in the 12-county M.T.A. service area.
- Same-Day Voter Registration
Not in the Plan
Spending cuts are not in the plan even though spending is a huge problem.
Cuomo’s speech was not entirely unsuccessful. It provided entertainment value for economic writers.
Mike “Mish” Shedlock
Typical liberal think.He’s a moron along with everyone who voted for him.
“Andrew Cuomo proposes a cornucopia of new taxes.” I thought Cuomo complained that NYers were going to get hit with higher taxes because of the loss of federal deductions. So his answer is to raise state taxes as well.
@whirlaway
Rich welfare recipients, which account for the vast, vast majority of the “rich” in New York, are the ones providing campaign funding for Cuomo’s gangster state. Why on earth would he antagonize those guys?
Taxes, like all government institutions, are all about robbing the productive quiet man, and handing the loot to the state dependent and well connected privileged classes. Anyone claiming they have some other purpose, is either out there doing a sales job, or a hopelessly indoctrinated, uncritical dunce.
I say raise the taxes until some rich guy ACTUALLY leaves. Then we will believe it. CA raised its taxes and people said the same thing. Show me anyone who left Woodside, CA and left for Podunk, MS 🙂
It is better to live in a place that has better climate, better opportunities and better cultural pastimes even if it has higher taxes. Who thinks paying 10% tax and living in San Francisco is worse than paying 0% taxes and living in Bumblecrap, MO?! Apparently not too many!
There, I fixed it for you Cuomo you idiot.
“You know what my recommendation is? Get out of….” New York.
As if Cuomo needed to provide New Yorkers with more reasons to flee. I drove through northern NY state for the first time 2 years ago and I could not believe what a depressed area that is, with nice big old abandoned houses everywhere.
Mario Cuomo, “It’s Washington’s fault that you are taxed so highly in New Yawk. The solution is to raise your taxes”. They will vote with their feet.
My interpretation of Coumo’s proposals is that he is running for president in 2020.
Narcotic abusers are dying because legal pharmaceutical narcotic (and Illegal heroin for that matter) are being faked with cheaper Chinese Fentanyl with piss poor quality control. Don’t get me wrong I’ve been giving 4 to 10 of my anesthesia patients a day 100 micrograms of fentanyl for 34 years. I haven’t killed anyone yet. Do they stop breathing? Hell yes every day, but that’s what I get paid the big bucks for. The difference is that I know exactly how much I’m giving. You take some fake OxyContin you might get the correct 100 mcg you might get 1000mcg. So the black market due to the decreasing availability of legal pharmaceutical narcotic is driving the huge increase in deaths. 1st post sorry hit return and posted in 2 sections.
Narcotic tax 2 cents a milligram. Effective dose Sufenta 10 micrograms (tax $.0001), Fentanyl 100 micrograms (tax $.001), Hydromorphone 2mg (tax $.02), Hydroxycodone 5mg (tax $.05), Hydrocodone 10mg (by far the most frequent post operative prescription at my orthopedic surgery center) ($.10 a pill tax); and Demerol 50mg (tax $.50 a pill — now we’re talking revenue). The focus on pharmaceutical narcotics is purely for “deep pocket” pharmaceutical companies to line the pockets of lawyers (you can’t sue or tax drug dealers or drug counterfeiters). I’ll concede a slight uptick in narcotic abuse from MD’s with ethical failings, but the huge uptick in narcotic abuse death rates is not due to highly regulated, super high quality controlled, DEA approved pharmaceutical narcotics.