New York’s ‘Tax Cutting’ Budget Extends High Taxes On Businesses

New York Governor Andrew Cuomo and state lawmakers are touting the budget deal they worked out as a great thing for middle class taxpayers. They’re going to send out $350 checks, as if that political gimmick is going to cure all of our economic ills. Throw in the minimum wage hike, and we’ll be seeing young workers having an even harder time finding jobs, or getting their hours cut. But the most dishonest part about the budget is that they’re saying it’s all about tax cuts, when it extends current high taxes on the wealthy and businesses.

Albany politicians will tell constituents that most of them will get a $350 tax rebate check next year. The officials won’t likely mention it will come from part of the $6 billion in income taxes millionaires will pay over three years.

Lawmakers will also say they are phasing out over three years the onerous utility tax paid by employers who already have some of the highest energy costs in the nation, but likely won’t mention the tax was supposed to end this year.

“It’s not a tax-cutting budget, no way,” said E.J. McMahon of the fiscally conservative Manhattan Institute. “It’s an election-year check in the mailbox, pure and simple.”

In Albany, resurrecting taxes about to die is just part of the deal.

The extended taxes were not only needed to pay for the tax cuts for middle class families and mostly small businesses pushed hard by the Senate’s Republican conference. Republicans needed the tax cuts to agree to the Assembly Democrats’ top priority of an increase in the minimum wage, according to a senior administration official who spoke only on the condition of anonymity because closed-door budget strategy isn’t supposed to reach the public. (Read More)

As usual, the Republicans cave to the left. It would be nice if they stood up for something for a change. Is it any wonder wealthy New Yorkers are leaving moving out of state, and businesses are either joining them or going out of business altogether? Oh, but there are plenty of tax breaks for Hollywood and the Tonight Show.

In the meantime, property taxes are higher in New York than almost every other state, and so are is the gas tax. Nothing in this budget does anything to lift those burdens off the middle class.