The state will require corporations to pay higher taxes for at least three more years to fund a record $260 billion state budget and offset federal cuts, budget officials said.<\/p>\n
Gov. Kathy Hochul will propose a $260 billion spending plan Tuesday following a two-year promise for a $1 billion child care program for New York City parents with 2-year-olds\u00a0 \u2014 reflecting a 2.4% increase from $254 billion last year.<\/p>\n
The governor, who is seeking re-election in November, wants to extend higher taxes on corporations that net over $5 million in profits through fiscal year 2029.<\/p>\n
\u201cThis is just holding the line on current law taxes in the state of New York,\u201d state Budget Director Blake Washington told Spectrum News 1 late Monday.<\/p>\n
The increased COVID-era tax on businesses, that Hochul originally decided would sunset April 1, is poised to generate an additional $1.6 billion annually as the governor faces increasing pressure from New York City Mayor Zohran Mamdani and progressives to hike taxes on millionaires and billionaires.<\/p>\n
\u201cIt\u2019s just because we have ambitious investments across the board,\u201d Washington said. \u201cIt\u2019s child care, it\u2019s based Medicaid spending, it\u2019s maintaining a foundation aid formula as robust as it is.\u201d<\/p>\n
Hochul\u2019s budget commits $39.3 billion for education, up 4.3%, and $38.2 billion for health care amid $10.3 billion in federal cuts for the next fiscal year that starts April 1.<\/p>\n
Businesses have increasingly gone to other states that do not collect personal income taxes, Washington said.<\/p>\n
\u201cBusinesses are mobile and we want to make sure that our tax policy acknowledges that and we maintain the base here in New York without doing anything to promote flight,\u201d he added.<\/p>\n
The executive budget will also propose a 75% tax on tobacco-free nicotine pouch products like ZYN \u2014 adding about $54 million to support health spending, including Medicaid costs increasing 11.4% with at least 450,000 New Yorkers losing coverage under the Essential Plan later this year.<\/p>\n
\u201cIt\u2019s a gateway drug,\u201d Washington said. \u201cThe state of New York pays for the fallout of bad public health decisions, so using ZYN, there\u2019s symmetry in taxing those types of products \u2026 it just gives us more resources to fund the interventions [and] have people not use them in the first place. If you tax people too much on their ZYN, maybe they\u2019ll stop using it.\u201d<\/p>\n
The state projects a $6 billion budget gap next year, increasing to a $12.5 billion hole by fiscal year 2030. <\/p>\n
The governor\u2019s spending plan will maintain about $14.6 billion in reserves after using roughly $6 billion last year to satisfy the state\u2019s outstanding unemployment insurance debt.<\/p>\n","protected":false},"excerpt":{"rendered":"The state will require corporations to pay higher taxes for at least three more years to fund a…\n","protected":false},"author":2,"featured_media":105714,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[206,116,427,9,11,10,49,51,50,12,112,87],"class_list":["post-105713","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-albany-capital-region","tag-app-ny-state-of-politics","tag-kate-lisa","tag-new-york","tag-new-york-headlines","tag-new-york-news","tag-new-york-state","tag-new-york-state-headlines","tag-new-york-state-news","tag-news","tag-ny-state-of-politics","tag-politics"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/105713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=105713"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/105713\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/105714"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=105713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=105713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=105713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}