E.J. testified before Albany’s Joint Legislative Fiscal Committees today. One tidbit illustrates the Empire State’s acute dependence on Wall Street:
Just how dependent on Wall Street had we become? Consider this: in 2006, auto manufacturing accounted for 6 percent of Michigan’s economic output. The securities industry was over 8 percent of New York’s. Wall Street loomed larger in our budget and economy than oil and gas in Texas, or coal mining in West Virginia.
E.J. goes on to say that while it’s not a good idea to dump a massive array of new taxes onto a struggling economy, some of Gov. Paterson’s individual tax proposals are worse than others. One alternative to the governor’s proposal, to hike income taxes on the “rich,” is particularly bad.
“The real problem with New York’s state and local tax structure is not that the wealthy are under-taxed, but that middle class residents are badly over-taxed by national standards. But the right policy goal is to reduce tax rates on the middle, not to increase them at the top.”
If you missed the live show, the written testimony is here.
You may also like
New York’s Medicaid Spending Is Running Billions Over Budget
New York's Medicaid program ran billions of dollars over budget during the first half of the fiscal year, adding to signs of a brewing fiscal crisis in Albany.
According to the fro Read More
As migrants flow to NY, so does red ink
The influx of foreign migrants to New York could cost the state $4.5 billion more than expected next year, Governor Hochul today warned. Read More
At mid-year, NY still far below most states in pandemic jobs recovery
New York has added private-sector jobs in all but three of the 38 months since the COVID-19 outbreak of March 2020—but the Empire State remains below its pre-pandemic employment level and continues to trail the national recovery.
On a seasonally adju Read More
The Bill Arrives: NY Faces $9B Budget Gap Next Year
New York’s outyear budget gaps, the shortfall between planned state expenses and state tax receipts over the next three years, has exploded to more than $36 billion, just-released documents show. Read More
NY school spending again led US, hitting all-time high in 2020-21
Public elementary and secondary school spending in New York rose to $26,571 per pupil in 2020-21, according to the latest Census Bureau data Read More
A Tale of Two Levies
New York school districts are getting record levels of state aid. But how many are using it to cut taxes? Read More
Albany’s Belated Budget Binge
State lawmakers have begun passing the bills necessary to implement the state budget for the fiscal year that began April 1. Read More
Hospital Lobby’s TV Campaign Spreads Misinformation About Medicaid
As New York's health-care industry agitates for more money from the state budget, two of its most influential lobbying groups are airing TV ads that make alarmist and inaccurate claims about Medicaid. Read More
Enjoying our work? Sign up for email alerts on our latest news and research.