August 12, 2020

“New York should pass a so-called mark-to-market tax bill to raise $5.5 billion annually and help the state during its post-pandemic recovery, a report by the left-leaning Fiscal Policy Institute said Wednesday.

The labor-backed policy group endorsed the mark-to-market tax proposal as New York faces a $14 billion revenue shortfall and estimated 20% cuts to education, hospitals, local governments and nonprofits. While state Democratic lawmakers and Gov. Andrew Cuomo, a Democrat, have been pushing federal lawmakers to provide aid to states to help fill depleted coffers, the Fiscal Policy Institute said measures like a mark-to-market tax on the wealthy need to be considered to help the state through its budget crisis.

Jonas Shaende, chief economist for the Fiscal Policy Institute, said in a statement that New York’s income divide before the pandemic struck  was already significant and that the trajectory hasn’t stopped.

“Implementing tax initiatives like the Billionaire Mark to Market Tax can provide the revenue necessary to support essential programs and services,” Shaende said. “Cutting services at this point will slow down everyday New Yorkers’ ability to regain their financial footing and security.”

Read the full Law360 article.