250 CEOs and Executives Express “Alarm” at Biggest Tax Hike in New York History

A group of 250 CEOs and business leaders sent a letter to New York governor and lawmakers expressing “concern” over what they say this could become the biggest spending and tax increase in the world. state history.

The letter, delivered 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 passed. more fully recovered from the pandemic and that workers return. As employers of more than 1.5 million people, leaders said many of their workers had left town and if taxes increased “they would vote with their feet.”

“Only around 10% of our colleagues are in the office and the future prospects of a dense urban workplace are uncertain,” the letter said. “Many of our staff have relocated their families to other locations, generally with much lower taxes than New York, and the proposed tax increases will make it harder for them to return.”

The signatories of the letters include Jamie Dimon, CEO of JPMorgan Chase, Larry Fink, CEO of BlackRock Inc., Albert Bourla, CEO of Pfizer, Jane Fraser, CEO of Citigroup, and Robin Hayes, CEO of JetBlue. The group said that “significant increases in corporate and personal taxes will make it much more difficult to restart the economic engine and replenish the deep and diverse talent pool that makes New York City the world’s largest city.” .

“These are not companies threatening to leave the state; it’s just our people voting with their feet, ”the letter said. “Ultimately, these new taxes could result in a significant loss of economic activity and revenue, as companies are forced to relocate their activities to where talent wants to live and work.” This is what happened in 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 on businesses and high incomes that could reach $ 6 billion a year. They say the pandemic has increased inequality in New York City and that higher taxes on businesses and high incomes are needed to fund social programs and close the wealth gap.

Yet New York’s fiscal position has recently improved. The state is expected to receive $ 12.5 billion in unrestricted funding from the federal stimulus bill, and New York State Director Robert Mujica has said that stimulus funds and tax revenues are higher than planned would allow the state to avoid planned budget cuts.

The group said it understood the “urgent human needs” and inequalities exposed by the pandemic, but that proposed tax increases or policy changes are expected to come after New York takes over.

“Once we are on the path to restoring the more than a million jobs and thousands of small businesses that New York City has lost in the past twelve months, it may be necessary to generate new income. to fill the gaps in our education, health and social activities, social protection systems, ”the letter said.

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 wealthy people in their homes pleading for the status quo.”