It appears the defeat of senate republicans that secured a veto proof majority may represent a loss of executive power. Both Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie have announced they favor tax increases on “the wealthy,” and for income brackets below, an amorphous concept. The increases are likely to be across the board. Governor Cuomo has expressed concern that high earners may react by leaving the state. Economics 101: people respond to incentives.
Senator Stewart-Cousins recognises this but must guard her left flank populated by some who want to make New York look more like California now losing population because its policies are leading to corporate flight. Mr. Cuomo may find enough funds through fiscal maneuvering and federal bailouts to balance the budget, but it remains likely the senate and assembly will enact higher taxes. More revenue from “adult, recreational marijuana” and online sports gambling will not be enough to assuage those who “have had enough” because they always want more. Imagine state-run therapy programs to rehabilitate those addicted to weed whilst they gamble on line.