Capitol Notes

David Paterson predicts more taxes are coming to New York

Despite serving as the frontman for a coalition opposing higher taxes, former Gov. David Paterson believes the state will adopt some new measure aimed at wealthy New Yorkers to bring in more revenue during the pandemic.

“If anybody thinks they’re getting out of this situation without suffering the way the rest of us will, they’re really missing the point,” Paterson told The Capitol Pressroom.

“Speaking for myself, to begin with, I don’t think anybody seriously thinks that they’re going to get out of this crisis without being taxed. Now the way that it’s actually done, and the portion can be worked out,” Paterson said. “I think the only general point that the group is trying to make, is that when you’re making a list of revenue generators or ways to balance the budget and all you include is taxes, that’s the non-starter. Not just for the group, it’s a non-starter for (Cuomo’s) budget office, because it would never work.”

The Wall Street Journal first reported on the emergence of the “Campaign for New York’s Future,” which pledged to lobby against efforts in New York to raise income taxes on millionaires, as has been tried in the past, or create new taxes on financial transactions or accumulated wealth. But despite this initial line in the sand, Paterson acknowledges new taxes “may have to be utilized to close a portion” of the state’s multi-billion dollar budget shortfall, especially if the federal government doesn’t provide aid.

“What I was trying to say is that I saw some lists of revenue generators that were coming out of some of the research groups and some of the legislators and all of the revenue generators were taxes. That’s what concerns me,” Paterson said on The Capitol Pressroom. “We’re not going to solve this problem by taxing our way out of it. And we’re also not going to solve this problem by cutting our way out of it.”

 

 

He stressed that the campaign is more than just its opposition to new taxes, noting they’re interest in promoting a grant program for businesses owned by women and people of color and better utilization of vacant storefronts in New York City.

As for how this advocacy will be paid for, and whether GOP benefactor Paul Singer is lending his support, as NY1 reported, Paterson said, “I haven’t seen the whole list (of supporters). The hotels association of course is involved. There’s some technology groups as well.”

The Capitol Pressroom · Fmr. Gov. Paterson leads splintered coalition’s campaign against massive tax increases
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