Governor Cuomo: Tax Increase Still Possible Despite $12 Billion in Federal Aid
New Yorkers could still see an increase in taxes despite more than $12 billion in federal aid coming from the latest stimulus package.
“Tax increases are on the table, because you have damage to repair,” Cuomo told reporters in a press call Sunday, according to the New York Post.
The $1.9 trillion coronavirus stimulus plan, passed by the Senate Saturday, March 6th, earmarks $12.5 billion for the Empire State, with a little more than $6 billion going to New York City, nearly $4 billion heading to the state’s counties with $825 million for small cities, town and villages. The bill heads back to the House for final approval before heading to the President for his signature.
Governor Cuomo warned New Yorkers in early December of 'dramatic tax increase' to cover the $15 billion gap created by COVID-19 if Washington didn't provide financial aid. Tax increases are still on the table for the latest budget despite the federal aid Washington will provide for New York. “It’s the difference between $12.5 billion and $15 billion, and don’t get me wrong, $12.5 billion is very, very helpful," said Cuomo. "But there is still going to be a discussion about taxes."
The question for lawmakers is how and where to spend the federal money. "It's going to be very important because this is not a sustainable level of spending, Cuomo said during a daily briefing. "This does not mean this is going to be an easy budget. It means it is now a possible budget, not an easy budget.
Lawmakers are expected to pass New York's budget by the end of March.