Cuomo Faces Pressure From All Sides Over Proposed Tax Hikes

By: Jared Evan

Governor Cuomo’s 2021 keeps getting worse. Not only does he have a nursing home scandal brewing, but women also accusing him of sexual harassment every other day, an ethics scandal regarding COVID tests being directed to his family, and an impeachment investigation on the horizon. To add on to his troubles, hundreds of businesses are pressuring him to go against the Democratic state Legislature’s proposed tax hikes while Democrat Socialists, progressives and labor unions are calling for the taxes to be signed into law.

Wall Street Journal reported that a letter delivered Monday to Gov. Andrew Cuomo and Democratic leaders of the state Legislature, 250 business executives said a package of tax increases proposed by the Assembly and Senate would “jeopardize New York’s recovery from the economic crisis inflicted by Covid-19” and were unnecessary because of the $1.9 trillion federal relief bill passed earlier this month. Democratic.

“Many members of our workforce have resettled their families in other locations, generally with far lower taxes than New York, and the proposed tax increases will make it harder to get them to return,” the executives wrote. “This is not about companies threatening to leave the state; this is simply about our people voting with their feet.”

Budget Director Robert Mujica said during a conference call with reporters that budget negotiations were proceeding between executive and legislative aides.

WSJ reported that Mujica pointed to better-than-expected revenue payments and the Federal COVID program netting NY state $12.5 billion in unrestricted payments under the bill, and billions more dedicated for health and education programs, which would prevent further cuts to services.

Mujica was not specific as to whether the improved economic conditions could change the current tax proposals.

WSJ reported:

Kathryn Wylde, president of the business group Partnership for New York City and one of the letter’s signatories, said the Democratic governor has been a force of fiscal moderation during his time in office.

“It’s obvious that there’s great concern among business leadership that the governor is in a weakened state because of the super-majorities that Democrats have in both houses of the Legislature,” Ms. Wylde said in an interview.

The progressive heavy Assembly and Senate passed budget proposals last week that each raised more than $6.5 billion by increasing corporate franchise and income-tax rates and enacting a new surcharge on income derived from capital gains.

With powerful leftists joining Republicans and calling for an impeachment, WSJ pointed out:

Democratic Socialists of America and labor backed Invest in Our New York Coalition organized a march in New York City this weekend that simultaneously called for Mr. Cuomo to be impeached and for lawmakers to pass higher taxes that he has resisted.

On Tuesday, hundreds of people marched to the state Capitol to demand higher taxes on the wealthy.

Will Cuomo cave to their demands and stick with giant tax hikes to gain some favor with the leftists who are joining the chorus for impeachment?