New York State Government Andrew Cuomo speaks at a news conference on September 8, 2020 in New York.
Spencer Platt | Getty Images
A group of 250 CEOs and business leaders sent a letter to the governor and lawmakers in New York, expressing “alarm” about what they say could become the largest increase in spending and taxes in the state’s history.
The letter, sent to Governor Andrew Cuomo and Democratic members of the State Assembly and Senate, urged politicians to postpone any tax increases until the state and New York City have fully recovered from the pandemic and workers return. As employers of more than 1.5 million people, executives said many of their workers have moved out of the city and if taxes rise “they will vote with their feet”.
“Only about 10% of our colleagues are in the office and the prospects for the future of a dense urban job are uncertain,” the letter said. “Many members of the workforce have relocated their families to other locations, generally with much lower taxes than New York, and the proposed tax increase will make it more difficult to get them back.”
Letter signatories include JPMorgan Chase CEO Jamie Dimon, president and CEO of BlackRock Inc., Larry Fink, president and CEO of Pfizer, Albert Bourla, Citigroup CEO Jane Fraser, and JetBlue CEO Robin Hayes . The group said that “significant increases in corporate and individual taxes will make it much more difficult to resume the economic engine and reassemble the profound and diverse talent pool that makes New York the largest city in the world.”
“It’s not about companies threatening to leave the state; it’s simply about our people voting with their feet,” the letter said. “Ultimately, these new taxes can trigger a major loss of economic activity and revenue as companies are pressured to move operations to where the talent wants to live and work. That’s what happened to New York in the 1970s.” when we lost half of our fortune 500 companies and it took thirty years to recover. “
Governor Cuomo’s office did not immediately respond to a request for comment.
Democratic members of the State Assembly and Senate have proposed a series of tax increases for high-income companies that could exceed $ 6 billion a year. They say the pandemic has increased inequality in New York and that higher taxes are needed for companies with high incomes to fund social programs and reduce the wealth gap.
However, New York’s budget image has recently improved. The state is to receive $ 12.5 billion in unrestricted funding from the federal stimulus bill, and New York State Director Robert Mujica said incentive funds and stronger-than-expected tax revenues would allow the state to avoid cuts. planned budget.
The group said it understood the “urgent human needs” and inequities posed by the pandemic, but that proposals for tax increases or policy changes should come after New York’s recovery.
“Once we are on track to restore more than a million jobs and thousands of small businesses that New York has lost in the last twelve months, it may be good to raise new revenue to fill education gaps.” , health and social welfare systems “, the letter stated.
Rebecca Bailin, campaign manager for Invest in Our New York, an effort to fund social programs by taxing the rich, said the letter was “250 rich people in their homes advocating for the status quo.”