Congressman Chris Jacobs, R-NY-27, was joined by Congress members Elise Stefanik (NY-21), Claudia Tenney (NY-22), Lee Zeldin (NY-01) and Andrew Garbarino (NY-02) in calling on New York State Assembly Speaker Heastie and Senate Majority Leader Stewart-Cousins to eliminate proposals to raise state taxes for the new fiscal year.
The members said, “Our state has suffered from decades of irresponsible and self-serving public policies, laws and regulations that have made living, working and running a business in New York incredibly expensive. The exodus from our state due to these flawed policies has only been exacerbated during the COVID crisis. Many of those individuals and businesses that are being taxed at high rates have a greater ability than ever before to move from New York and are doing so. Increasing taxes in the midst of our recovery from the pandemic would only accelerate that trend.”
Last week, both the State Senate and Assembly passed budget proposals that would increase taxes in New York by roughly $6.5 billion – this through raising income and corporate franchise tax rates, as well as a new surcharge on income derived from capital gains.
In addition to the $12 billion New York received from the recently passed American Rescue Plan, New York has also received more than $7.5 billion in direct funding to the state and certain local governments, over $50 billion in Paycheck Protection Program loans to New York small businesses, and $8 billion to the Metropolitan Transportation Authority from previous COVID-19 packages, among other additional funds.
The members said, “Congress recently provided over $12 billion to New York state to relieve the fiscal burdens caused by the COVID-19 pandemic. This funding, along with other provisions, should be more than enough to balance the state’s budget without burdening New Yorkers with more tax increases. Instead of increasing taxes, New York state can improve its fiscal standing by undertaking meaningful reforms to improve the functioning of the state government and our economy.”
Earlier this week, 250 New York business executives also sent a letter regarding this proposal, stating that such increases would “harm our economic recovery and force companies and residents out of the state in search of a lower cost of operating and living.”