It wasn’t quite “read my lips,” but Gov. Kathy Hochul vowed Thursday that she would do everything in her power to ensure there are “no new taxes” from New York’s 2023 state budget.
“I don’t believe in raising taxes if we just cut taxes [this year] makes sense,” Hochul said during a Thursday news conference in Albany.
“I don’t foresee that.”
She added: “We’ve also given an historic amount of money back to people, property owners and middle-class tax cuts that we’ve accelerated in the form of tax refunds, so we’re very conscious of how we could put more money back in our pockets during our budgeting process.” New Yorker.
Hochul’s comments were reminiscent of George HW Bush, who uttered a line that became a catchphrase that helped him help Michael Dukakis win during his successful 1988 presidential bid, saying, “Read my lips: No new taxes!”
But Bush collected dues and fees as president and lost re-election to Democrat Bill Clinton in 1992.
Hochul, who expects a national economic downturn or slowdown, also warned that next year Albany will not have the geyser of federal stimulus money used to boost spending in this year’s $220 billion election-year budget.
But she said the state has accumulated billions of dollars in reserves to deal with the loss of expected tax revenues.
“We saw that could happen. We wanted to be ready and that’s why we put a lot of money in the reserves last year. But this year it’s a completely different story. People make all kinds of predictions, talk about where our economy is going to go nationally, what that’s going to do to us here in upstate New York,” Hochul said.
Hochul won her first election as governor, defeating Republican challenger Lee Zeldin last month in a very close race to serve a full four-year term after replacing the disgraced ex-govertin. Andrew Cuomo last year.
Political observers want to see if Hochul moves more to the center now that she was elected independently, albeit in a less than impressive way.
Hochul’s statement is a warning shot for her tax-loving Democrats in the state legislature — and particularly for her party’s extreme left wing, which has consistently pushed for higher taxes on the wealthy.
The New York chapter of the Democratic Socialists of America – of which Representative Alexandria Ocasio-Cortez is a champion – is already running a campaign to “tax the rich”.
Mayor Eric Adams also said Wednesday he opposes higher taxes on the city’s wealthiest, who devote a disproportionate share of city tax revenues to fund community treasury services, because he feared they would migrate to lower-tax places.
“Continuously attacking high earners where 50% of our taxes are paid by 2% of New York … It blows my mind when I hear people say they’re leaving,” the mayor said during an event organized by the Association for a Better sponsored by New York, a pro-business group.
“No, you go! I need my high earners right here in this town,” Adams said to applause.
Hochul made the tax pledge after outgoing state budget director Robert Mujica gave a more sobering budget update, saying next year’s budget negotiations with the state legislature will be more difficult due to an economic slowdown.
According to the governor’s mid-year financial plan, the state has nearly $9 billion in reserves.
Over the next three years, $10.4 billion in additional deposits will bring reserves to $19.5 billion, or 15 percent of government spending, the report said.
Reserves in 2025 will exceed multi-year projected budget shortfalls of around $6.5 billion, budget officials said.
https://nypost.com/2022/12/15/kathy-hochul-doesnt-foresee-any-new-taxes-in-2023-ny-budget-despite-calls-to-soak-the-rich/ Kathy Hochul doesn’t “foresee” any new taxes in New York’s 2023 budget, despite calls to water the rich.