ALBANY — Gov. Cuomo says the state needs high tax rates on millionaires because the economy’s struggling — but some analysts say the economy’s struggling because of those high tax rates.
Cuomo (pictured) admitted yesterday New York faces yawning budget deficits in the future — and said the $2 billion that seven-figure earners will pony up annually through his three-year extension of the state’s top income-tax rate will help plug the gaps.
“Even with the millionaires-tax extension, we’re still showing an additional $2 billion gap in the out years,” Cuomo said on upstate’s “Capitol Pressroom” radio show. “The economy hasn’t come roaring back . . . so we still needed the funding.”
But it’s high taxes that are helping to slow the economy, business leaders say.
“The economy won’t come roaring back if we continue to have the economic reputation we do, and high taxes feed that reputation,” added small-business lobbyist Mike Durant.
Cuomo and state lawmakers agreed last week as part of a deal on a new state budget to keep the state’s top income-tax rate at 8.82 percent through 2017, rather than let it drop to 6.85 percent as scheduled in 2015.
In the meantime, the fine print of the new budget shows taxpayers with annual incomes between $40,000 and $300,000 and at least one kid can expect an automatic $350 state rebate check in their mailbox around Oct. 15 next year — about three weeks before the 2014 elections.