Press release:
Congressman Chris Jacobs (NY-27) was joined by Congressmembers 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.
“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,” representatives Jacobs, Stefanik, Tenney, Zeldin and Garbarino wrote.
Last week, both the NYS Senate and Assembly passed budget proposals that would increase taxes in New York State 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 State 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, more than $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.
“Congress recently provided over $12 billion to New York State to relieve the financial 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,” the representatives wrote. “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.”
Yesterday, 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.
Full text of the letter can be found here:
Dear Speaker Heastie and Majority Leader Stewart-Cousins
We write to urge you to resist increasing taxes on New Yorkers in the upcoming fiscal year. As you know, Congress recently provided over $12 billion to New York State to relieve the financial 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.
While some of us were not members of the U.S. House of Representatives during the last Congress, Congress appropriated billions of dollars to New York last year through the passage of five bipartisan bills. Those laws included over $7.5 billion in direct funding to the state and certain local governments in New York, over $50 billion in Paycheck Protection Program loans to New York small businesses, and $8 billion to the Metropolitan Transportation Authority, among other important executive and legislative assistance from the federal government.
Though we opposed the passage of the American Rescue Plan, many of us are on record supporting measured and targeted relief funding for New York State and local governments. We believe such funding is necessary given the challenges of the pandemic. We must also acknowledge, however, that 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.
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. This would be far more preferable than punishing New Yorkers for the state’s mismanagement.
We appreciate your leadership and are always willing to work with you on the many challenges facing our state.
