New York State Tax Increase Budget Proposals

IgniteLI is aligned with the Association for a Better Long Island, the Long Island Builders Institute, and the Long Island Association in their call for the NYS Legislature to reconsider all tax revenue increases from the one-house budget bills in the NYS Senate and Assembly.

COVID-19 has had a significant impact on Long Island’s economy, affecting individuals as well as both small and large businesses. The enormous economic wreckage from COVID19 has yet to be fully known.

Thankfully, the federal government has provided NYS with $12.6 billion from the $1.9 trillion American Rescue Plan Act of 2021, along with tens of billions more to New York for education, mass transit, Medicaid, and direct aid to local municipalities. Even a cursory review of state finances reveals this aid is more than adequate to address NYS budget shortfalls from the COVID-19 pandemic as well as deficits from years past, while still increasing state education funding by 3-4%. Accordingly, the tax increases contained within both one-house budget bills are not needed and, in fact, potentially devastating to our region’s economy.

Long Island, whose economy is closely aligned with New York City, is currently confronting a pandemic-induced economic recession with private-sector job losses of over 100,000. The state’s proposed tax increases will drive away businesses and high wealth individuals, who pay the majority of the state’s tax revenue, and ultimately shift the tax burden onto Long Island’s middle class.

For perspective, a recent Manhattan Institute report cited that the top 0.8% of tax filers (with adjusted gross incomes of $1 million or more) account for 40% of New York City’s income-tax revenue, and taxpayers with adjusted gross incomes of $100,000 account for 80.2%. The implications are chilling if these individuals believe New York has become a hostile and sullen tax and spend environment.

Furthermore, Newsday’s March 15, 2021 editorial called the NYS Senate and Assembly budget proposals, “anything but good government.”

Therefore, in order to retain job-producing businesses and tax revenues within NYS and protect Long Island’s middle class, the Association for a Better Long Island, Long Island Association and Long Island Builders Institute respectfully request that all tax revenue increases be eliminated from the one-house budget bills in the NYS Senate and Assembly.