Down to brass tax

Gov. Cuomo and Assembly Speaker Carl Heastie both seem resigned to the fact they may have to raise taxes soon to fill what’s currently a $15 billion crater in the state budget. Where they seem to disagree is on the timing — with Heastie urging his members to convene before the calendar turns to 2021 to hike taxes on the rich, and Cuomo urging them to wait and negotiate tax increases as part of the overall budget.

Heastie contends an untested part of state law requiring advance notice to raise taxes compels legislators to vote before midnight on Dec. 31. Heastie may also be trying to prove his progressive bona fides to far-left activists weighing primary challenges against his members.

Motives aside, a tax hike should wait until after the new year.

Any increase ought to be crafted to meet the specific fiscal need, a number still unknown. That deficit may shrink if, fingers crossed, Congress and President-elect Biden pass a healthy aid package with aid for states, or if sales and other tax revenue come in higher than the state’s gloomy predictions.

Besides, the Legislature should, for once, do some real thorough brainstorming on how to get closer to balance. The state budget is $177 billion; look harder than ever for savings across all agencies. When the topic turns to taxes, evaluate suggestions like a capital gains tax, re-instating the stock transfer tax, or revoking outdated, expensive tax incentive programs.

Already, nearly half New York’s operating budget is paid for by $50 billion in annual personal income tax revenue, and more than half paid by the top 2% of earners, some 188,000 people. If even a small number make permanent their temporary COVID relocations to Grand Teton and Palm Springs, school aid and Medicaid funding are in jeopardy.

Be smart.