At his first public cabinet meeting in Albany since 2014, Governor Andrew Cuomo reiterated his push for the extension of the millionaires tax -- underscoring his belief that keeping high rates on the rich is necessary.
"I don't know how you close the budget without it," Cuomo said.
Cuomo is embracing the extension of the tax rates due to expire at the end of the year. The idea is opposed by Senate Republicans. But Cuomo insists the state needs the revenue to pay for his proposals, including a middle-income tax cut approved last year.
"If you do not extend the millionaires tax, you have a tremendous hole in the budget," the governor said, "and I don't know how you complete a budget without the millionaires tax."
Cuomo was hesitant to back the millionaires tax the last time it had to be extended in 2011. Now he says it has very little impact on whether wealthier New Yorkers leave the state.
"The tax went into effect in 2009. I don't believe it caused anyone to leave," Cuomo said.
His posture on the issue has cheered advocates for the poor.
"If you don't renew the millionaires tax, you lose funding for public schools, for health care, for housing, for everything that folks need from state government," said Michael Kink, the executive director of Strong Economy For All.
And Assembly Democrats want to keep high rates on millionaires, and increase taxes on those making more than $5 million -- generating billions of dollars in new revenues lawmakers want to see go toward education.
"We're still sticking to it," said Assembly Speaker Carl Heastie. "It will be part of our one-house budget resolution."
The Republican-led Senate, meanwhile, released its economic forecast for the year, finding an additional $503 million in spending aside from the $152 billion Cuomo wants to spend. The budget is expected to pass March 31.