Cuomo says he will have to revise his proposed budget as personal income tax collections drop $2.8 billion.
With a “$500 million drop in revenues for December” and as more tax-weary New Yorkers flee the state “poor performance in January have created a $2.3 billion drop in anticipated revenues”.
Comptroller Thomas DiNapoli said “I fear it’s going to get worse before it gets better, its a matter of very, very serious concern.” Early indicators are not good.
amendments to Cuomos budget, which came in at $175.2 billion, serves notice to the Senate and Assembly, which for the first time in most of a half-century is controlled by Democrats.
Cuomo will no longer have Senate Republicans as an ally for fiscally conservative measures.
One percent of taxpayers pay almost half of New York’s taxes.
Moody’s noted that New York taxpayers were encouraged to pay their 2018 taxes early, by Dec. 31, 2017, before the new federal deduction cap became effective, or the budget gap would have been significantly larger.
“Cuomo noted states dominated by Democratic voters, like New York, New Jersey and California, are hit by the loss of deductibility but lower-wage, lower taxed states in the Midwest and South — which voted for Trump — enjoy the tax break unscathed.
Cuomo said he and his administration are blameless. He said the continued exodus of residents from the state are not his heavy taxes so feels blameless” (CLUELESS AND EVIL I SAY!)
“We did everything right from a tax point of view,” Cuomo said.
State operating funds spending will grow by 3.4 percent — the third year in a row that Cuomo exceeded his 2 percent cap, said David Friedfel, director of state studies at the independent Citizens Budget Commission.
Cuomo uses “gimmicks” in accounting such as reclassifying some spending to be exempt from the spending total used for the cap and shifting costs to other fiscal years.