The authorities of NY presented on Tuesday a budget proposal that foresees major cuts in education and healthcare and a temporary rise of taxes to the richest to compensate for the state’s fiscal hole in the event that federal aid of about 15,000 million dollars does not arrive, according to EFE.
NY, the state hardest hit by covid-19, calculates that this is the amount that stopped entering as a result of the pandemic and asks Washington for support to cover that deficit.
Thus, the state governor, the democrat Andrew Cuomo, presented on Tuesday two draft accounts for the next fiscal year (which begins in April) and that take into account the possibility that the state receives these 15 billion or that he only gets 6,000, which would be “the worst possible scenario.”
In that situation, the budget would include a cut of about 2 billion dollars in education, about 600 million in health and about 900 million in other areas.
In addition, Cuomo proposes a temporary tax increase for those who earn more than five million dollars a year, with a rate that would go from 8.82% to 10.82%.
The governor, a centrist Democrat, has traditionally opposed raising the tax burden on large fortunes, something that other members of his party have defended, but he considers that now it would be Absolutely necessary to try to balance the accounts.
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Cuomo, in any case, insisted that the federal government must assume its responsibility and help a state that “has paid a bill for covid that no other state in the country has paid.”
President-elect Joe Biden has proposed earmarking $ 350 billion to support state and local governments within his new stimulus plan, but its approval and how the money is distributed is up to Congress.
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