In an opinion piece to his constituents on Monday, New York Gov. Andrew Cuomo pushed for comprehensive tax reform for the state of New York.
In his piece published on Monday, Mr. Cuomo calls for sharing the tax burden, saying that the current tax code unevenly distributes between low income and high income taxpayers throughout the state.
“In New York under the permanent tax code, an individual making a taxable income of only $20,000 pays the same marginal tax rate as an individual making $20 million,” Mr. Cuomo wrote.
“It’s just not fair. While New York’s earned income tax credit, child care credit, and high standard deduction help working poor families, New York has left the middle class with an undue burden which also hinders our economic recovery,” the governor added.
Mr. Cuomo was also critical of the “millionaire’s tax,” which was enacted in 2009 to impose a surcharge on workers earning over $200,000 annually. The “millionaire’s tax” is set to expire December 31st, prior to the January return of the New York state legislature.
“ The millionaire’s tax purported to shift the tax burden to the super wealthy to alleviate the burden on the middle class. But it failed on both counts,” Mr. Cuomo said.
“And it did absolutely nothing to lower the disproportionately high tax burden on middle class families, who continue to pay the same marginal rate whether they make $40,000 or $299,000 in taxable income,” Mr. Cuomo added.
The New York Democrat has also been pushing an economic stimulus package that includes more state spending on road and bridge construction, youth programs and resort style gambling. That is highly unlikely though, as the state constitution prohibits commercial gambling, and an amendment would require approval by two consecutive state legislatures.
Mr. Cuomo though believes that the reforms to the state tax code would lead to job creation and economic growth. Though the unemployment rate in New York dropped to 7.9 percent in November, the number of unemployed citizens remains high throughout the state.
“We need to reform the code in a way that creates jobs and grows our economy. To do that, we need to put more money in New Yorkers pockets and inject it back in to the economy,” Mr. Cuomo wrote.
“During these difficult times, New Yorkers will step up and do their part to create jobs and revive our economy – but the system must be fair for all,” Mr. Cuomo added.
