President Bush’s proposed tax cut plan would cost New York state and New York City a combined $711 million next year, according to an estimate released Jan. 14 by state Comptroller Alan G. Hevesi (D).
For those in the “why should I care about New York?” department: Hevesi observes that “New York is not alone in being injured by the President’s proposal. Forty-one of the fifty states will lose an estimated $4.5 billion in revenues in the first year alone, according to the Center for Budget and Policy Priorities.”
(Yes, I know I already mentioned the Budget and Policy Priorities report, but I think it bears repeating.)
Hevesi points out that this revenue hit would come at a time when states are already facing budget gaps totalling between $60 billion and $85 billion for next year.
â€œIf the president is not going to help state and local governments, he should at least not hurt us,â€ Hevesi said. â€œHe should structure his dividend tax cut so that states are not injured.â€
If by some chance the plan does pass, however, look for many states to decouple from the federal changes (as a significant number have done in the aftermath of the federal estate tax phase-out).
Meanwhile, I heard on Morning Edition (NPR) that Bush is campaigning today for $200-$250k med-mal award caps.
And of course everyone knows by now that the administration is filing an amicus brief in support of a lawsuit challenging the University of Michigan’s admissions program (the university take race into consideration during the admissions process). Do yourself a favor and read TBogg’s description of the announcement.