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IPFS News Link • TAXES: State

Governor Cuomo's Pitiful Tax Hike Ultimatum Will Punish New York

• by Mike Shedlock

Biden Elected, Begging Starts

It did not take long for the begging to start. 

New York Governor Andrew Cuomo launched the effort with a Tax Hike Ultimatum

"If the federal government doesn't fund state and local governments, it's going to hurt all New Yorkers," Mr. Cuomo warned Tuesday while proposing to raise the state's top income tax rate in New York City to 14.7%. This would be the highest rate in the country, at least until New Jersey Gov. Phil Murphy makes a competing bid.

Mr. Cuomo's ultimatum goes like this: Democrats in Washington must deliver $15 billion in budget relief pronto or he will raise the state's top tax rate to 10.82% from 8.82% on income over $100 million and create four new tax brackets on income of more than $5 million. New York City has a top rate of 3.88%, though Mayor Bill de Blasio wants to raise it too.

The Governor says the higher rates would be temporary, but New Yorkers know better than to believe him after he broke his promise to let the millionaire's tax that Albany imposed during the 2009 recession expire. Mr. Cuomo is also begging Democrats in Congress to lift the $10,000 state-and-local tax (SALT) deduction limit to mitigate his tax hike.

Add these tax increases to Medicare taxes, and some New Yorkers would pay a marginal tax rate as high as 64% under Mr. Cuomo's plan. Florida Gov. Ron DeSantis may need to set up temporary asylum camps in Palm Beach for the waves of New York tax refugees.

Pitiful, Just Pitiful

Gratefully, I expect Cuomo's pitiful plea to go straight to the ash pile of requests not delivered where it belongs.