Cuomo: Federal tax law costing NY state $2.3B so far

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ALBANY, N.Y. (AP) — State officials say New York’s income tax receipts are down more than $2 billion so far, and Democratic Gov. Andrew Cuomo is placing the bulk of blame on the effects of last year’s Republican-led federal tax cuts.

Cuomo says at a state Capitol news conference Monday that the federal law capping a deduction for state and local taxes at $10,000 is the main culprit for a projected $2.3 billion deficit.

Cuomo, joined by Democratic Comptroller Thomas DiNapoli and budget director Robert Mujica, says he’ll be making adjustments in the $175 billion state budget proposal he unveiled last week. The governor didn’t provide specifics. He has until mid-February to make budget amendments.

Democrats in Albany had warned that the tax cuts would hurt predominantly Democratic states such as New York.

Republican State Senator Fred Akshar released the following statement Monday:

While the Governor is quick to blame the $2.3 billion revenue shortfall on his two favorite scapegoats, the federal government and the weather, he cannot ignore over a million New York residents who’ve left this state over the past nine years for lower taxes and better opportunities elsewhere – long before these new federal tax policies were enacted.

This fiscal year, New York has a serious budgetary challenge to face, but our adversary is not the federal government or mother nature. It cannot be found in a courtroom or in an atmospheric current, but in the mirror. Our enemy is our own relentless addiction to tax-and-spend policies.

Make no mistake, we cannot sue our way to a balanced budget and we cannot tax our way into a better business climate. If we do not put our state on a new path toward affordability for everyday New Yorkers, their families and their businesses, we will only continue to repel residents rather than attract them. We will only see revenues continue to fall with the mass exodus of residents who simply can’t afford their state government.

I stand ready to work with the Governor and my colleagues on both sides of the aisle to help our government look within. We can and we must get our spending under control without sacrificing valuable programs. We can and we must lighten the tax and regulatory burdens our state government places on residents and businesses call New York home.

The alternative clearly isn’t working for anyone.

Associated Press

Associated Press

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