Mayor de Blasio and Gov. Cuomo were on a collision course Monday over taxes — with de Blasio declaring that he won’t abandon his plan to tax the rich even if the state funds the universal pre-kindergarten classes that he’s been pushing.
“We are not going to water down our goal,” de Blasio proclaimed, reiterating his intention to ask Albany to hike city income taxes on those earning $500,000 or more no matter what happens on the pre-K front.
At the same time that de Blasio was being joined by labor leaders in Harlem to promote higher taxes, Cuomo was with business leaders in Albany to boost his proposal for reducing state taxes by $2 billion over three years.
“Cutting Taxes for All New Yorkers” announced a banner positioned in front of Cuomo, who is running for re-election this year.
The governor deflected questions about how he and de Blasio were moving on divergent tracks.
“I’m in agreement with the mayor that pre-K is the direction this state has to head . . . The question becomes how do we pay for it,” Cuomo said. “That’s going to be a broader conversation with the Legislature when everything else is on the table.”
The mayor made it clear that he’ll take whatever money the state wants to offer — while still demanding that the wealthy pay more to cover the pre-K expansion.
“If there are other resources available in Albany, I assure you we have plenty of other needs for them, in our schools and beyond,” de Blasio said.
“We don’t want half-measures, we don’t want partial funding,” he added. “When the budget cuts come, children are often the first to take the hit. The vulnerable take the hit.”
Hotel-workers union chief Peter Ward backed up the mayor by saying it was “imperative” that his tax increase be approved.
“Taxes reflect the values we have,” said Ward.
And retail-workers union chief Stu Applebaum said de Blasio’s proposal is “the only agenda that makes sense.”
Democratic legislative leaders have said they back de Blasio’s plan, leaving Cuomo and GOP state Senate co-leader Dean Skelos as the chief stumbling blocks.
The governor offered a starkly different message from the newly minted mayor — arguing that government is too big and taxes are too high.
The governor didn’t mince words in describing New York as “government-crazed,” pointing to 10,500 local governments which he said are “crushing this state.”
Cuomo’s plan calls for reducing the corporate tax rate from 7.1 percent to 6.5 percent — the lowest since 1968 — and eliminating the upstate manufacturing tax rate and corporate licensing fee.
“You can’t beat zero,” Cuomo said.
The governor also proposed giving renters who earn less than $100,000 a tax credit, saving tenants an average of $153.
“The governor’s plan will fundamentally improve the business climate in our state and is perhaps the most important single action the state could take to encourage job creation and economic growth,” said Kathryn Wylde, president of the pro-business Partnership for New York City.