New York State is facing a $2 billion deficit, said Governor Andrew Cuomo on Monday.
Cristobal Young, a sociologist at Cornell University who studies income inequality and the effects of taxation on the rich, comments on Cuomo’s explanation that the deficit was caused by Trump’s federal tax cuts.
“The 2018 tax returns are not due until April 15. Moreover, most high-income earners file for a six-month extension - so we won't see their tax returns until fall of 2019. Until these come in, we don't know if there are more people filing from out-of-state, or if there are fewer top income earners in the state. The governor's statements are not based on facts.
“As of fiscal year 2018, New York income tax revenues are at an all-time high - the state has never had more cash-on-hand. If revenues, in the last two months, are coming in below forecast, the problem may well have been with the forecast itself.”