Adams Asks Progressives to Stop Saying, “Tax the Rich,” as Hochul Continues to Refuse to Raise Taxes for All
By Yehudit Garmaise
As business owners face a looming recession, they can breathe easier knowing that Governor Kathy Hochul continues to refuse to raise taxes on New Yorkers.
"I don't believe that raising taxes in a time in which we just cut taxes makes sense," said Governor Hochul, who, along with the State legislature is currently preparing next year’s State budget.
While many economists say refusing to raise taxes in a recession is the right way to prevent further economic downturns, outgoing NY Budget Director Robert Mujica, warned that the State budget “will reflect the risks that the State is facing.
"We're seeing most consensus economic forecasters predicting an economic downturn, which is driven by the actions of the federal government."
If budget cuts are necessary, progressive advocates worry that funding for the poor, for schools, and for healthcare will be the first to go.
"[Progressive] New York voters overwhelmingly think the wealthy paying what they should in taxes makes sense [because doing so] allows the State to invest in services that benefit everyone," said Carolyn Martinez-Class, the campaign coordinator of the Invest in Our NY Campaign. "It's disappointing that Governor Hochul is not centering the needs of the people who elected her to office."
Conservatives, however, argue that relentlessly taxing the wealthy not only discourages entrepreneurship and economic investment, but encourages wealthy New Yorkers to continue to leave the State in droves.
In 2020 and 2021, for instance, when NYC said goodbye to the 300,000 wealthy residents who left the State, the city lost $21 billion of their combined incomes and the jobs they provided, the New York Times reported.
While progressives say they are not bothered by NYC’s largest flight of wealthy residents ever recorded, Mayor Eric Adams insists that encouraging rich New Yorkers to flee to Florida and elsewhere will only decimate the NY economy.
At a press conference in which the mayor and governor met on Wednesday to revive business districts in the city, Adams asked the State to stop, “continually attacking high-income earners, where 51% of our taxes are paid by 2% of New Yorkers.
“It's blowing my mind when I hear people say, ‘So what if [the wealthy] leave?’
“No,” the mayor told such people, “You leave.
“Who are my high-income earners right here in this city? I want them to be part of [the city’s economy.]
“[I want] the person who drives a limousine to be paid a good wage and the person sitting in the back of the limousine to continue to use their discretionary funding to [shop, and to] go to our restaurants and our hotels.”
Photo credit: Flickr