In a continued tantrum against the “Tax Cuts and Jobs Act,” Governor Cuomo called the tax changes an “economic missile” as he unveiled his new budget proposal for the fiscal year. His solution? Raise more taxes mainly on businesses and restructure certain taxes so that New York gets its share of the pie.
One major change Cuomo has proposed is to eliminate the state income tax on wages for many New Yorkers; it would be replaced by a new payroll tax paid for by employers. This would be an disastrous burden for New York businesses who would conceivably have to cut wages in order to cover the cost of such a tax and deal with an excessive amount of increased paperwork.
Other ridiculous ideas include: a) a 2-cents-per-milligram tax on all opioids produced, paid for by the drug manufacturer; b) expanding the internet sales tax, a measure that has already failed twice; c) a 10-cents-per-milliliter tax on vapor products, paid for by the distributors; and d) a $120 “safety inspection fee” for motor coaches, ambulances, and other for-hire, for-profit cars that carry passengers subject to inspection by the DoT.
Just as egregious is Cuomo’s proposal to go after health insurers who stand to benefit from the tax reform bill. As some insurers could see up to a 40% reduction on their federal corporate taxes, Cuomo wants to pick their pockets by implementing a 14 percent surcharge on those gains in order to close the budget deficits.
For a governor who once emphasized his fiscal restraint, this budget shows how unhinged and out-of-touch with New Yorkers and New York businesses Cuomo has become.