Gov. Andrew Cuomo called for an array of new revenues to close the state’s $4 billion budget hole on Tuesday while sketching his spending plan for the coming fiscal year.
The governor asserted that Albany could reap $750 million from sales of health care nonprofits to private entities, $140 million from a new tax on health insurers, $170 million from an opioid surcharge, $300 million through a one-year suspension of certain corporate tax credits and $318 million through an internet sales tax.
The 2017 federal tax legislation eliminated the state and local tax deductions, which let New Yorkers report less on their returns to the Internal Revenue Service. Cuomo reiterated his earlier calls to restructure New York’s tax system by replacing the income tax with a payroll tax—eliminating the excise on employees for money earned, and putting the burden instead on employers for wages paid.
This idea won a swift and bitter rebuke from a top small-business trade group.
The governor again teased a congestion pricing plan that would fund the moribund subway system through a new charge on cars entering the Manhattan business district. He offered few new details other than insisting that he would not impose tolls on the four city-owned East River bridges, but promised a full proposal later in the week.