New York state faces tax increases and layoffs of essential government workers if the federal government does not provide aid to state and local governments for the COVID-19 pandemic, according to Gov. Andrew Cuomo (D).
During a November 23 briefing on the pandemic, Cuomo said even with some serious belt-tightening, New York would still face “a long-term issue” without federal aid. Even with the second-highest income tax rate in the country, New York still does not generate enough revenue to recover from the pandemic, he said, adding that without federal aid, essential workers such as teachers, police, and healthcare workers could face layoffs.
Cuomo also said all states — not just New York — need support, and he compared the need for a federal stimulus to the need for oxygen when asked how vital a stimulus is. “If they don’t fund the states, I think you’ll see a national recession,” he said. “You can’t say to 50 states, ‘Go bankrupt,’ without saying to the nation, ‘Go bankrupt.’ It’s a problem for every state.”
The governor's office did not respond to a request for comment by press time.
Cuomo previously called for Congress to provide $59 billion in financial assistance during the pandemic, stating that New York is in “an impossible financial situation.”