“Tax and Spend” Continues In Assembly Majority Budget

Budget proposes $5 billion in new taxes

Assemblyman Michael Fitzpatrick (R,C,I-Smithtown) strongly opposes the latest budget proposal brought forth by the Assembly Majority and is speaking out against the lack of real decisions being made when it comes to cuts.

“The tax-and-spend ways of Albany have become so careless that we are attempting to tax unborn children,” said Assemblyman Fitzpatrick. A newly introduced “Baby Tax” would place a $170 million assessment on OB-GYN services in hospitals. “This budget shows no attempt at solving the state’s fiscal problems, like over taxation and excessive spending. The Majority is short-sighted in taxing births and success in this state.”

The Majority’s spending plan, passed today, proposes two new taxes, increasing the burden on New Yorkers to the tune of nearly $5 billion this year alone. Just in the last three years alone, there has been a $15 billion tax increase, and the astronomically-high cost of living in New York has no end in sight with this budget. Among the new taxes proposed by the Assembly Majority include the “Success Tax,” a tax hike on New Yorkers making over $1 million a year. According to the CNBC America’s Top States for Business, New York is rated as one of the most hostile states to do business in and the “Success Tax” would only further drive away long-term, private-sector jobs. By increasing taxes on successful individuals, the state is inhibiting further investment.

Another glaring oversight in the budget proposal is centered on the Medicaid system of New York, which is the largest and costliest in the nation. The governor’s proposed budget put a cap on the rate of spending on Medicaid which was removed by the assembly’s budget. “We cannot control spending in the state without controlling the spiraling costs of Medicaid; this proposal alone will cost New Yorkers $1 billion a week,” said Assemblyman Fitzpatrick. “We are facing tough times throughout the country and this budget’s attempt to continue to spend beyond the state’s means is irresponsible. Long-term, real reform is needed and it is needed now.”

The largest point of contention for Assemblyman Fitzpatrick is the lack of pension reform included in the proposal. According to the Empire Center for New York State Policy, over the next five years, taxpayer contributions to the state and local retirement systems will double. The Assemblyman noted that he wants all elected and appointed officials to go into a 401k program. “The state retirement system is the single, largest issue bankrupting New York,” said Assemblyman Fitzpatrick. “New York’s public pension system is in desperate need of reform, something the Majority’s budget completely ignores.”