Congress has given the state of NY a cash bath, a bailout related to the negative impact of Covid -19 and overspending that perennially generates deficits driven by long term public sector settlements the legislature and governor know cannot be met without more taxes or “one shots.” This week’s new entry in the one shot sweepstakes is lawsuit filed against Amazon for some sort of neglect of employees safety, health, etc. Soon litigation settlements will become part of the budget or financial plan.
Despite encouraging revenue collections that had been in doubt (or portrayed as such for political reasons) and the aforementioned bailout, a bill has been introduced to tax stock transfers because New York State does not have one but other jurisdiction do. That bizzare explanation is part of the introductory record. New Yorkers are the highest taxed citizens in the country, yet the justification for the bill ignores this and that other jurisdictions -foreign, too – do not place as punitive a tax burden on their citizens. In addition, the memo implies that banks, brokerages, etc., are captives to Wall Street as are the financial wizards who staff the industry, ignoring that the money market is not a “place” but a “thing” connected electronically. Logic and legislation part ways especially in NY with democrat super-majorities in both houses and a governor who has been able to deflect some arcane proposals but is now under siege.