The wealthy have been fleeing the socialist policies of New York for some time now. The flight of those who have money is speeding up however just as New York Governor Andrew Cuomo is warning of budget problems. He announced Monday that state income tax revenues plummeted by $2.8 billion since he introduced his new budget plan last month which means spending will have to be massively cut in the state. He says he needs to reconsider spending on schools, healthcare, and repairs to roads and bridges.
Instead of taking stock of his failing fiscal policies, Cuomo, of course, blamed President Trump’s new tax plan for the state’s problems. In actuality, it is high taxes on everything that is choking the life out of New York and businesses there. Socialists are great at giving stuff away until they run out of other people’s money… that would be the wealthy fleeing the state.
“Gov. Andrew M. Cuomo on Monday announced a dramatic drop in state income tax revenue of $2.8 billion, which he says will prompt him to revise his 2019-20 budget and reconsider spending on schools, health care and repairs to roads and bridges.
“Cuomo, a Democrat, blamed the shortfall on a federal tax plan backed by Republican President Donald Trump. Cuomo said the law’s cap on deductions for state and local taxes at $10,000 was to blame and suggested it is, anecdotally, triggering high-earners to leave New York.
“At this point there is no doubt that the budget we put forward is not supported by the revenues,” Cuomo said at a State Capitol news conference. “It’s as serious as a heart attack.”
“Cuomo said he’s not certain what areas might need to be cut, but said the biggest spending areas now are education, health care, infrastructure and another phase-in of a previously approved middle-class tax cut.
“I fear it’s going to get worse before it gets better,” state Comptroller Thomas DiNapoli said in a rare news conference with Cuomo. “It’s not all gloom and doom, but it’s a matter of very, very serious concern.” Tax revenues could rebound, he said, but he agreed with Cuomo that early indicators are not good.
“Cuomo has until mid-February to submit amendments to his budget, which came in at $175.2 billion when he unveiled it Jan. 15.
“The announcement also serves notice to the legislature, which for the first time in most of a half-century is controlled by Democrats.
“The Democratic majorities in the Senate and Assembly have several proposals to add to the budget. Cuomo will no longer have Senate Republicans as an ally for fiscally conservative measures. The Republicans lost the majority in the November elections.”
New York’s revenue problems can’t be blamed on Trump. I don’t blame those who are successful for hightailing it out of New York. They get to keep a pittance of their hard-earned income. Between state, city, and federal taxation there’s not much left when these thieves are done. Note to Cuomo… those wealthy you are fleecing are the ones that actually work and pay taxes.
Cutting taxes and enticing business to the state is the way to go, but liberals can’t seem to wrap their heads around the concept. In fact, you have Marxists such as NY Rep. Alexandria Ocasio-Cortez and others in the Democratic Party who want to raise the top tax rate to a whopping 70% or more. They want to do away with billionaires too. Talk about biting the hand that feeds you.
It’s a good thing Cuomo will never be elected president. He would turn all of America into New York. As The Federalist put it, “Not since John F. Kennedy was President has there been a Democrat that understood lower taxes on the wealthy helps the poor.” And that certainly includes Cuomo.