LEGISLATIVE CAUCUS CALLS FOR MEASURES TO INCREASE REVENUE IN NEW YORK STATE

ALBANY, NY (May 12, 2020) – Our state is one of great wealth and opportunity. However, wealth- and income-inequality remains an issue for far too many New Yorkers; and the disparities are exponentially worse for communities of color. While legislative and budget policies seek to provide balance and opportunity, the Caucus recognizes that funding is necessary to achieve the societal gains we need in order to keep New Yorkers moving forward. It is why we add our voices to those of our colleagues in the New York Congressional Delegation who are fighting for our state’s fair share of federal aid as we seek to recover from and attend to the Coronavirus outbreak.

As the COVID-19 pandemic has made New York the epicenter of this global crisis, we have all scrambled to respond to the needs of our respective communities. The loss of life, sickness, and economic despair has been tragic and all-consuming. However, as leaders, it is incumbent upon us to lead not only for the present, but for the future. Thus, it is vital that we usher in fiscal policies that will begin to aid the recovery for the millions of New Yorkers across the state.

This virus has highlighted the need to come together behind a series of efforts that will soften the economic blow of the pandemic, and provide New York with the financial resources necessary to avoid cuts to much-needed services for our most vulnerable communities.

Thus, in addition to calling for increased federal funds, the Caucus supports the following statewide measures that individually and collectively would go a long way in ensuring the future economic recovery of our state.

Adult-Use Cannabis

The Marijuana Regulation and Taxation Act would reduce criminalization and justification for law enforcement interaction, work to repair the harms of the marijuana arrest crusade, and reinvest in the communities most harmed by prohibition enforcement. Marijuana prohibition has not been effective in its stated goal of stopping or curbing marijuana use across New York State. Instead, prohibition has fueled the growth of an illicit industry, has been disproportionately enforced in communities of color, and has been fiscally irresponsible. By responsibly legalizing, regulating, and taxing marijuana, New York State will generate billions in new revenue.

Mobile Sports Betting

While the legalization of mobile sports betting would not be a cure-all for New York’s current fiscal crisis, it stands to create a new revenue stream that could be tapped in order to aid us through these difficult times as we seek to fund crucial statewide services.

According to the NYS Gaming Commission, New York’s four upstate casinos that allow sports betting pulled in only $1.9 million this past January, while New Jersey with its mobile component earned a gross revenue of $53.6 million for the same month. Given the fact that New York’s population is more than twice that of New Jersey and has more tourists, our state’s ability to raise more revenue with mobile sports betting is greater. Legalization would go a long way towards bridging the gap of billions in lost state revenue due to the COVID-19 pandemic.

Pied-à-Terre Tax

In 2019, progress was made in conversations on the implementation of a tax on the mostly-vacant extra homes of the very wealthy among us. We have the opportunity to build on these discussions and implement a fiscal policy that would yield $650 million a year in new revenue for New York State.

Stock Transfer Tax

Through the implementation of a progressive stock transfer tax in New York State, economists and fiscal experts have estimated that we could be generating upwards of $13 billion in revenue each year. As one of the largest economies in the world, and the financial capital, we leave vital funding on the table by not adequately taxing our rich financial services industry.

Millionaire’s Tax

We are in support of a progressive ultra-millionaires’ tax that would set higher income tax brackets for income above $5 million, $10 million, and $100 million. By seeking slightly more from those with the most among us, we can generate over $2 billion annually for the benefit of all New Yorkers.

The decisions we face as we lead the state out of this health and economic crisis are not easy ones. But as New Yorkers, we stand united in our determination, sacrifice, and commitment to recovery. As always, we can weather any crisis and emerge stronger. To do so, however, we must work together to begin to shape the way forward. Therefore, the Members of the Caucus strongly urge all of our colleagues in federal, state and local government to join us in supporting these policies to ensure that our communities have the resources that are so desperately needed at this time.

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