Amid fears of losing $90 billion in federal aid, New York lawmakers are considering higher taxes on the wealthy, targeting residents earning over $5 million.
Labor unions argue the increased revenue would fund essential services like education, housing, and child care. However, Gov. Kathy Hochul seeks to balance affordability with extended millionaire taxes through 2032, sparking criticism from fiscal watchdogs who warn it could hurt the state’s competitiveness.
Supporters believe the tax hike is necessary to counter potential federal funding cuts, especially in Medicaid and transit.
However, critics caution that raising taxes could accelerate the state’s ongoing population decline. Legislative leaders remain undecided, awaiting revenue forecasts in March before determining the tax’s role in the final budget.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].