{"id":149871,"date":"2021-01-08T03:36:44","date_gmt":"2021-01-08T00:36:44","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/andrew-cuomos-case-for-more-bailouts-from-feds-rests-on-phony-math\/"},"modified":"2021-01-08T03:36:44","modified_gmt":"2021-01-08T00:36:44","slug":"andrew-cuomos-case-for-more-bailouts-from-feds-rests-on-phony-math","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/andrew-cuomos-case-for-more-bailouts-from-feds-rests-on-phony-math\/","title":{"rendered":"#Andrew Cuomo\u2019s case for more bailouts from feds rests on phony math"},"content":{"rendered":"

“#Andrew Cuomo\u2019s case for more bailouts from feds rests on phony math<\/strong>”
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The results of this week\u2019s Georgia Senate runoffs, assuring Democrats will soon control both houses of Congress, as well as the White House, had to come as a huge relief to Gov. Andrew Cuomo.<\/p>\n

Cuomo spent the last nine months assuming, expecting and finally hoping desperately for a fresh multibillion-dollar infusion of unrestricted federal aid \u2014 on top of billions already steered to the Empire State by a $2 trillion federal CARES Act stimulus last March.<\/p>\n

Sen. Mitch McConnell and his fellow Republicans had dug in against \u201cblue-state bailouts.\u201d If the GOP had retained a Senate majority, New York\u2019s Democratic governor would have been forced to confront a fiscal crisis made worse by his delaying tactics since the pandemic began to unfold.<\/p>\n

But based on the governor\u2019s sour tone the day after Tuesday\u2019s elections, you would never have guessed he had just heard very good news<\/a>. In remarks that would soon be overshadowed by the Capitol riot, \u00adCuomo claimed federal policies since 2016 amounted to \u201ctheft\u201d from the Empire State, turning New Yorkers into \u201ccrime victims\u201d entitled to compensation from the feds.<\/p>\n

The governor turned his ire against a favorite target: President Trump\u2019s tax-reform law, enacted at the tail end of 2017.<\/p>\n

Cuomo asserted that the new tax law \u201craised our property taxes $4 billion per year\u201d and \u201can average family\u2019s property taxes .\u2009.\u2009. [by] $2,600 per year for three years.\u201d He went on to claim that the tax bill had \u201ccost New Yorkers $30 billion\u201d in \u201cpure cash\u201d over the last three years. \u201cWe now have a $15 billion deficit,\u201d he added. \u201cThey took $30 billion. At a minimum we need to get $15 billion this year to cover our deficit.\u201d<\/p>\n

All of which was \u2014 and is \u2014 \u00adsimply untrue.<\/p>\n

In fact, New Yorkers\u2019 total federal income-tax payments decreased by $3.4 billion in 2018, according to Internal Revenue Service data. At that rate, the three-year impact of the Trump tax bill won\u2019t be a $30 billion tax hike but a $10 billion savings for New York residents.<\/p>\n

As for New York\u2019s current budget needs, the state doesn\u2019t now have a $15 billion deficit. As of Oct. 31, Cuomo\u2019s own financial-plan update indicated a gap closer to $8 billion for the fiscal year ending March 31.<\/p>\n

That\u2019s still huge, of course. But based on stronger-than-expected tax receipts through September, state Comptroller Thomas DiNapoli credibly forecasts that revenue this year will be $3.8 billion higher than the governor\u2019s last estimate, which would reduce the hole to $4.2 billion.<\/p>\n

The additional stimulus bill passed by Congress in December will translate into at least $4 bill\u00adion more in budget relief for Albany, in the form of added K-12 school aid (technically subject to a \u201cmaintenance-of-effort\u201d provision that the Biden administration is sure to waive if \u00adCuomo requests it).<\/p>\n

Between that added federal cash, the improved revenue outlook and perhaps $2 billion or more in still-unrecognized budget relief from the CARES Act, it\u2019s likely the state has no deficit, if not a small surplus \u2014 for now, that is.<\/p>\n

For fiscal 2022, which begins April 1, Cuomo\u2019s financial plan points to a historically large $16.7 billion gap. Even assuming that number is a bit inflated, the combined impact of the pandemic recession and Cuomo\u2019s failure to cut spending app<\/a>ears to have left the state facing a \u201cstructural\u201d gap of $8 billion to $12 billion \u2014 or worse, if the economic recovery is hampered by a fresh wave of regulations and taxes from Albany.<\/p>\n

Any help in Biden\u2019s expected stimulus bill will only put off \u00adAlbany\u2019s day of fiscal reckoning for another year or two. Assuming he seeks and wins a fourth term in 2022, Cuomo could end up reliving the experience of 2011, his first year as governor, when he had to close an $10 billion gap once President Barack Obama\u2019s stimulus aid ran out.<\/p>\n

If Cuomo wants a better federal deal for New York on a wide range of issues, from taxes to health care to infrastructure, he will need to stop hectoring and start persuading his fellow Democrats in Washington that it\u2019s in the national interest.<\/p>\n

After all, to whatever extent they were arguably skewed against New York\u2019s interests, Washington\u2019s Trump-era policies weren\u2019t \u201ctheft\u201d but democracy in action \u2014 which, thankfully, has resumed in our \u00adnation\u2019s capital.<\/p>\n

E.J. McMahon is an adjunct fellow at Manhattan Institute and senior fellow at Empire Center. Twitter<\/a>: @EJMEJ<\/em>\n <\/div>\n

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“#Andrew Cuomo\u2019s case for more bailouts from feds rests on phony math” The results of this week\u2019s Georgia Senate runoffs, assuring Democrats will soon control both houses of Congress, as well as the White House, had to come as a huge relief to Gov. Andrew Cuomo. Cuomo spent the last nine months assuming, expecting and…<\/p>\n","protected":false},"author":1,"featured_media":149872,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/01\/New_York_Legislature_Senate-ML.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[88727,88809,70877,10701,4953,70289],"class_list":["post-149871","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-1-7-21","tag-andrea-stewart-cousins","tag-budgets","tag-democrats","tag-new-york-city","tag-senate"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/149871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=149871"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/149871\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/149872"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=149871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=149871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=149871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}