New York Gov. Andrew Cuomo (D) is still considering tax increases to help fill the budget gap caused by the COVID-19 pandemic.
During a March 7 pandemic briefing, Cuomo noted that although the state would receive $12.5 billion under the $1.9 trillion federal coronavirus relief bill amended and passed by the Senate March 6, tax increases are still on the table for the budget.
Cuomo praised the Biden administration and the congressional delegation for their work on the federal relief package and said the federal assistance would help make a budget possible for the state. But he added that the state's "tremendous" financial needs require additional revenue.
According to the governor, the budget will raise two questions regarding taxes: “How much do you need to raise in tax revenue given the federal bill? And what are the smartest and best ways to raise revenue?” And because the federal aid would not be a recurring payment, he said, "How [we] spend it, where [we] spend it, how quickly [we] spend it, is going to be very important because this is not a sustainable level of spending."
Cuomo previously outlined options for his fiscal 2022 budget proposal that would implement spending cuts and tax increases on the rich if the state didn’t receive $15 billion in federal aid to close the budget gap. The proposed budget would also legalize and tax mobile sports betting and adult-use cannabis and delay the implementation of lower personal income tax rates for middle-income New Yorkers by one year.
The budget is expected to be completed in three weeks, according to Cuomo.
Legislation has also been introduced to increase the top state income tax rate for millionaires.
Neither Cuomo’s office nor the state budget division responded to requests for comment by press time.