old-beard-2009218A 21st Century Rip Van Winkle, awakening after a two-year catnap, might assume based on this morning’s newspaper headlines that David Paterson had been elected governor in 2010. But after rubbing his eyes and donning his reading glasses, old Rip would discover that the governor now getting ready to execute an 180-degree turn on taxes — just as Paterson did in 2009 — is none other than Attorney General Andrew Cuomo.

I do my best to explain what’s going on in today’s New York Post. The Assembly and Senate both reportedly are preparing to convene by mid week, for purposes of voting on … something or other. The governor Sunday issued what he called a “job creating economic plan” that would include casino gambling (which would require voter approval of a constitutional amendment in 2013), “regional strategies” for economic development (nothing new), an infrastructure financing plan that would tap pension funds (first reported a couple of weeks ago), and government jobs for unemployed teens. No mention of a permitting process for natural gas exploration, which would generate far more jobs and economic activity upstate than all of the other options put together (although the folks in Albany’s Academy Park would not approve).

Oh, yes — and the governor also mentioned something about making the tax system “fair, affordable and one that incentivizes economic growth.”  These words would normally imply an overall tax cut — except, keep in mind, the real purpose of this week’s special session is to raise taxes.

Will the latest version of the “millionaire tax” also start at incomes as low as $200,000?  Will it be permanent or temporary?  How high will the marginal rate be set?  The New York Timessuggests these answers:

..[O]ne or more new tax brackets for high-income earners would have those individuals paying less than they did under the surcharge — allowing officials to say that the millionaires’ tax had lapsed — but paying at a higher rate than they would have been under existing tax brackets. The proposal would also lower the tax rate for middle-income earners and might include tax incentives for businesses. It was not clear on Sunday what the income thresholds would be.

The officials, speaking on the condition of anonymity because the talks were private, said that if agreed upon, the new rates would last for several years; a commission would be created to come up with permanent new rates and to address tax loopholes and changes to business taxes.

Details to follow. Eventually.

As for the economic development program — to which the Times applies that Obama-esque label, “stimulus” — chances are it will look a lot like this, prompting Rip to conclude that he’ll miss nothing by going back to sleep for another three years.

You may also like

Highlights of Albany’s Bloated and Belated Budget

The state Legislature approved the last of nine budget bills Thursday evening, 38 days after the start of the fiscal year. Here are some highlights of the fiscal impact of final spending plan: Top lines Read More

Forcing Homes to Switch to Electric Heat is not a Good Policy

  New York has some of the most ambitious climate goals in the country: electric school buses by 2035, zero emissions electricity by 2040, etc. Why New Yorkers, who already consume less energy per capita than any state (other than Rhode Island), s Read More

After Tariff Shock, Albany Should Face its New Fiscal Reality

This year, for once, state lawmakers' failure to pass a timely budget could prove to be a stroke of luck. When President Trump rolled out his on April 2, Albany leaders had not agreed on a spending plan for the f Read More

New York’s Proposed ‘MCO Tax’ Would Generate a Fraction of What Lawmakers Expected

The Hochul administration's proposed "MCO tax" would generate far less than the $4 billion in extra federal aid anticipated by state lawmakers when they approved the concept this spring, according to documents obtained by t Read More

Cuomo’s House Testimony Added New Misinformation about Covid in Nursing Homes

Throughout the scandal over former Governor Andrew Cuomo's handling of Covid-19 in nursing homes, Cuomo and his administration repeatedly spread bad information – misstating how its policies had worked, understating death Read More

Hochul Hides the Specifics of a Looming Tax on Health Insurance

The Hochul administration has requested federal approval for a multibillion-dollar "MCO tax" on health plans without announcing the move or providing details to the public. As by l Read More

New Yorkers’ Health Costs Spiral as Officials Take Credit for ‘Savings’

The latest round of health insurance premium hikes announced by New York regulators adds to evidence that state policies are drowning consumers instead of helping them. Late last mo Read More

What Paul Francis Got Wrong About the Empire Center’s Nursing Home Research

In February 2021, the Empire Center published the first independent analysis of the Cuomo's administration much-debated directive ordering Covid-positive patients into nursing homes. The report found that the directive was associated with a statistically significant increase in resident deaths in the homes that admitted the  infected patients. Read More