Yesterday's editorial in the Wall Street Journal -
During his first term, Mr. Cuomo capped property tax levies, cut corporate taxes and scaled back pensions for new public workers. But after winning re-election in 2014, he moved notably to the left, including a ban on natural-gas fracking, a $15 minimum wage and 50% renewable-energy standard. The result?
All but two counties in New York (Ontario and Saratoga) have experienced a net outflow of residents excluding foreign immigrants over the last seven years, and three have lost more than 5% of their population. While Mr. Cuomo has pumped billions of dollars into reviving upstate, the GDP of Binghamton and Rochester has declined 1% and 0.5%, respectively. Meanwhile, he’s neglected New York City’s subway, which is constantly breaking down and needs tens of billions in repairs.
Mr. Cuomo’s response? Raise taxes. The budget imposes a $2.50 tax on taxis and $2.75 on Uber rides in Manhattan below Harlem to finance subway repairs, on top of a dozen or so current mass-transit taxes. Politicians who have mismanaged the subways will also now be entrusted with administering new state-sponsored Individual Retirement Accounts for workers in the private economy.
Mr. Cuomo’s budget also includes a prescription opioid surcharge, as if overtaxed New Yorkers needed to feel more pain. New York City’s 12.7% top income-tax rate is second highest in the country after California. The state’s property taxes also top the nation and have increased population flight. Mr. Cuomo has warned that the GOP tax reform’s limit on the state-and-local deduction could drive away more people and damage the state fisc. But his budget includes only Potemkin tax reforms.
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Despite having to close a $4 billion budget deficit, Democrats packed in billions of new spending including $118 million for free in-state public college tuition and $250 million for the New York City Housing Authority’s slumlords. Upstate gets $600 million for a new public health lab; $62.5 million for the 1980 Winter Olympic Games facilities; $30 million for a Photonics Attraction Fund; and $2 million for an industrial hemp seed certification and breeding program.
Mr. Cuomo is trying to buy votes around the state because he faces a primary challenge from “Sex and the City” star and de Blasio ally Cynthia Nixon. Ms. Nixon has attacked his subway stewardship, publicity-driven politics and corporate welfare. The budget gives her plenty of new ammunition.
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