Governor Andrew Cuomo has not minced words when it comes to the perceived impact of the federal tax law that passed in December.
"Washington hit a button and launched an economic missile and it said New York on it, and it's headed our way," Cuomo said.
Cuomo is upset the tax law caps state and local tax deductions at $10,000. But the windfall some richer New Yorkers have received could ultimately benefit the state.
"I think those who have done well from this federal tax plan, we'll ask them to contribute more," said Assembly Speaker Carl Heastie.
Assembly Democrats next month are likely to submit a budget proposal that hikes taxes on wealthier taxpayers, offsetting the gains they made in the tax cut approved by Congress.
"I'd anticipate in the Assembly's resolution, you'll see some examples of where we feel people have done better and done well from this tax plan, we'll ask them to share some of that gain with the rest of the state," Heastie said.
Cuomo himself has sought to take advantage of federal tax actions, imposing a 14 percent surcharge on health insurance companies that have benefitted from the tax cut.
All told, Cuomo has proposed $1 billion in new taxes and fees to help close a $4.4 billion shortfall. The tax proposals spurred Republican Senator John DeFrancisco to launch his gubernatorial campaign against Cuomo.
"You have to get the economy going," DeFrancisco said, "and you don't get the economy going if you have another billion dollars in revenue enhancers in this year's budget. In case you don't have a Cuomo index or glossary, revenue enhancers are taxes and fees. That's the opposite way to go."
Complicaiting matters further is a push by Cuomo to create a payroll tax that could act as a workaround for the cap on state and local tax deductions. Democratic lawmakers in Albany are generally in favor of it even as the details are still being worked out.
"We have to find the best way," said Senate Minority Leader Andrea Stewart-Cousins. "I don't think any of it will be easy, but I know all of it is necessary."
The Legislature on Tuesday released a schedule pegging the final budget passage by March 29 -- several days early.