Budget Agreement Fails to Raise Sustainable New Revenue to Address Affordability Crisis
Budget relies on temporary tax rates for corporations and highest earners — state’s long-term fiscal stability would be better served by making tax rates permanent
Failure to address high cost of living will continue to drive working & middle-class New Yorkers out of state — and undermine statewide economic growth
Following the announcement of an agreement on the FY 2024 State Budget, Fiscal Policy Institute Executive Director Nathan Gusdorf today released the following statement:
“Rather than raise sustainable new revenue through taxes on profitable corporations and high earners, this budget leaves critical funding on the table that could be used to expand childcare, invest in higher education, protect tenants, and close the MTA’s operating deficit. As a whole, this budget falls short of meeting the policy goals that would address New York’s affordability crisis.
“Moreover, the decision to exempt the New York City suburbs from the higher payroll mobility tax is indefensible from a tax policy perspective, given the substantial costs of the suburban transit lines and the dependence of the suburban economy on the city economy.
“This budget relies on temporary tax rates for corporations and the highest earners, leading to future fiscal cliffs that threaten the state’s long-term fiscal stability. The state would be better served by making the corporate and personal income tax rates permanent and broadly increasing the progressivity of our tax system for all high earners. The budget’s failure to address New York’s high cost of living will continue to drive working and middle-class New Yorkers out of state and undermine statewide economic growth.”
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Budget Agreement Fails to Raise Sustainable New Revenue to Address Affordability Crisis
Budget relies on temporary tax rates for corporations and highest earners — state’s long-term fiscal stability would be better served by making tax rates permanent
Failure to address high cost of living will continue to drive working & middle-class New Yorkers out of state — and undermine statewide economic growth
Following the announcement of an agreement on the FY 2024 State Budget, Fiscal Policy Institute Executive Director Nathan Gusdorf today released the following statement:
“Rather than raise sustainable new revenue through taxes on profitable corporations and high earners, this budget leaves critical funding on the table that could be used to expand childcare, invest in higher education, protect tenants, and close the MTA’s operating deficit. As a whole, this budget falls short of meeting the policy goals that would address New York’s affordability crisis.
“Moreover, the decision to exempt the New York City suburbs from the higher payroll mobility tax is indefensible from a tax policy perspective, given the substantial costs of the suburban transit lines and the dependence of the suburban economy on the city economy.
“This budget relies on temporary tax rates for corporations and the highest earners, leading to future fiscal cliffs that threaten the state’s long-term fiscal stability. The state would be better served by making the corporate and personal income tax rates permanent and broadly increasing the progressivity of our tax system for all high earners. The budget’s failure to address New York’s high cost of living will continue to drive working and middle-class New Yorkers out of state and undermine statewide economic growth.”