New York business leaders urge state lawmakers not to levy taxes
ALBANY, NY – Executives of major Wall Street corporations and other New York employers warned that an increase in taxes under the state budget could mean high-income individuals who left the state during the Covid-19 pandemic never return .
In a letter sent Monday to Governor Andrew Cuomo and Democratic leaders, 250 executives said a package of tax increases proposed by the Assembly and Senate would “jeopardize New York’s recovery from the Covid-19 economic crisis,” and were unnecessary because of Jan. $ 9 trillion, which was passed earlier this month. Democratic leaders in the State Assembly and Senate have proposed raising income taxes and adding a new surcharge on capital gains. The budget is due later this month.
The letter was signed by Jamie Dimon, CEO of JPMorgan Chase & Co., Jane Fraser, CEO of Citigroup Inc., James Gorman, CEO of Morgan Stanley, Larry Fink, Chairman of BlackRock Inc., and other executives from major law firms and real estate chambers of commerce around the state. Robert Thomson, the CEO of News Corp, also signed the letter. News Corp is the parent company of the publisher of the Wall Street Journal, Dow Jones & Co.
The highest-earning 5% of the state’s taxpayers make up more than 60% of the roughly $ 50 billion that New York collects in state income taxes each year. The officers said that remote working patterns during the pandemic meant many of the finance, real estate and legal professionals in this group could leave the tax base permanently if the proposed taxes were approved.
“Many of our employees have relocated their families elsewhere, generally with much lower taxes than New York, and the proposed tax increases will make it harder to get them to return,” the executives wrote. “This is not about companies threatening to leave the state. This is simply about our people voting with their feet. “