Jonas J.N. Shaende, PhD, Fiscal Policy Institute
March 26, 2018
Governor Cuomo released his 30-day amendments to the Executive Budget where he outlined his plan for the state’s tax system redesign in response to the tax changes at the federal level. The state legislature – both the Assembly and the Senate – reviewed the plan and supplied their respective amendments to the Executive Budget proposal.
The direction taken by the governor is a good one, however, the set of solutions being discussed and the process in which they are discussed could be improved. The challenges New York faces require a comprehensive approach to 1) address the new federal tax environment, 2) improve the structure of the NY state tax system both in response to and regardless of the new federal law, and 3) add appropriate revenue so the state can meet its needs. With a view to achieve that, it is highly advisable to have the proposed tax reform more thoroughly reviewed. It would be advisable to hold multiple hearings in different parts of the state to get valuable insight from experts, public officials, and the general public. There is no reason this needs to done within the confines of the budget, especially since there are no budget implications.