Hochul Points Finger at Trump’s Tax Law for New York’s Budget Mess
Let’s be real – New York’s budget situation right now? Not great. Governor Kathy Hochul‘s basically throwing shade at former President Trump’s 2017 tax law, saying it’s the main reason the state’s finances are in the toilet. And the numbers her budget chief Blake Washington dropped? Brutal. We’re talking $750 million short this year, and a jaw-dropping $3 billion hole next year. Ouch.
Why Hochul’s Pissed About That 2017 Tax Thing
Okay, so here’s the deal. Remember when Trump capped how much people could deduct for state and local taxes? That $10,000 limit hit states like New York – where taxes are already sky-high – like a ton of bricks. Hochul’s argument makes sense when you think about it: rich folks are either leaving or thinking twice about investing here because suddenly, their tax breaks vanished. “The numbers don’t lie,” Washington said during a briefing last Thursday. And honestly? They really don’t.
But here’s the kicker – it’s not just about rich people whining over taxes. When high earners bounce, that’s less money for schools, roads, you name it. That’s the thing that hurts everyone.
The Ugly Math Behind New York’s Money Problems
Right now, the $750 million gap mostly comes from taxes coming in lower than expected. People moving away isn’t helping either. But next year’s $3 billion nightmare? That’s when things get scary. We’re talking potential cuts to hospitals, crumbling infrastructure, the whole nine yards. Compared to before 2017, New York’s money situation has slowed to a crawl – like that one friend who always says they’ll pay you back but never does.
Politics As Usual: Democrats vs. Republicans
Democrats like Schumer have been calling the SALT cap a “political weapon” for years. Republicans? They’re basically like “nah, New York just spends too much.” Ed Cox, the state GOP chair, put it bluntly: “The problem isn’t the tax code – it’s that Albany can’t stop wasting money.” Economists can’t even agree – some say the cap was dumb, others argue New York’s money troubles started way before Trump.
Let me put it this way: it’s like arguing about who crashed the car when the engine was already smoking.
What This Means for Regular New Yorkers
If this keeps up, Hochul’s got some nasty choices: cut services, raise taxes (again), or drain the rainy day fund. Public workers are already freaking out about possible job cuts. “This isn’t just about numbers—it’s about people,” some insider in Albany said. And they’re right. Plus, if all the wealthy folks keep fleeing to Florida or Texas, what’s that mean for the rest of us stuck here?
Not Just New York’s Problem
New York’s not alone in this mess. Jersey and California are dealing with the same SALT cap headache. There’s been some noise in Congress about changing it, but let’s be honest – when does Congress actually fix anything these days?
The Bottom Line
Hochul blaming Trump’s tax law is about more than just politics. It’s forcing New York to face some hard truths about how we pay for stuff and who gets stuck with the bill. Whether the tax law’s really the main villain or not, one thing’s clear: Albany’s got some serious explaining to do.
Want to Dive Deeper?
- NY’s Official Budget Report (Bring Coffee – It’s Dry)
- What Experts Say About the SALT Cap
- Hochul’s Full Speech (With Bonus Political Drama)
Source: NY Post – US News