Cuomo turns to array of tax hikes to balance budget; Flanagan says 'No' - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
January 17, 2018 Newswires
Share
Share
Post
Email

Cuomo turns to array of tax hikes to balance budget; Flanagan says ‘No’

Buffalo News (NY)

Jan. 17--ALBANY -- In some of Gov. Andrew Cuomo's past state budgets, one would need a miner's helmet and flashlight to find all the squirreled away tax and fee increases.

In the 2018 budget plan released Tuesday, Cuomo lays them out early and often, even listing in their own table of contents entry.

And there are many of what the administration calls "revenue actions,'' accounting for just shy of $1 billion in tax receipts for a hungry budget that will total $168 billion in the coming year.

There are little ones, like a tax hike on e-cigarette products, and another attempt at "internet fairness" by taxing third-party sales on places like Amazon and eBay.

And there are big ones, like the $500 million Albany could get in each of the next four years from not-for-profit health insurance corporations that convert or are bought out by for-profit companies.

Cuomo, who has sought over the years to portray himself as a tax cutter, made no hiding of the fact that he wants to raise $1 billion in the coming year in new tax hikes, shifts or a term governor after governor have used: tax loophole closings.

Noting a combined $1.6 billion increase proposed for the state's two biggest components -- public schools and Medicaid -- Cuomo said tax hikes are needed in the face of a projected $4.4 billion deficit.

"You can't possibly get anywhere near where you want to be on education and health care unless you raise revenues. It's just too big a deficit and the choice of cutting education or cutting health care, I don't think is a place anyone wants to go to this year. So you have to raise revenue,'' Cuomo said Tuesday in presenting his budget plan.

Senate Majority Leader John Flanagan, a Suffolk County Republican, offered a succinct response when asked if his GOP colleagues would go along with the Cuomo tax package: "No.''

In the end, though, lawmakers in both parties will want to raise the levels Cuomo is seeking to spend on education and health care. Of those two areas of the budget, Assembly Speaker Carl Heastie, a Bronx Democrat, likened them to a brother and sister. "You love them both,'' he said. He added: "If we want to spend more we have to find more revenues, and this is going to be a very challenging year in terms of revenues,'' Heastie said.

Cuomo's budget has given the Legislature a major head start when it comes to revenue raising ideas, including:

* Creating a new tax on opioid drug sales, which is expected to generate $171 million, which Cuomo said will be used to help fund anti-addiction efforts.

* Maintaining STAR property tax benefits at current levels, instead of proceeding with an expected 2 percent increase.

* Deferring a number of business tax credits through 2020 and imposing new inspection fees on privately operated passenger carries, such as motor coaches.

* Adding new patient costs on prescription drugs for those enrolled in the American Indian Health Plan.

* Creating a new pre-licensing course for people to get a driver's license and then charging them $8 apiece in order to raise nearly $1 million for the state.

* Ending an energy services sale tax exemption and expanding a number of tax enforcement measures, such as a new effort to ensure all of New York's cigar taxes are collected.

Cuomo also wants to go after health insurance companies that he said "just got a 40 percent windfall profit" as a result of the recently approved federal tax overhaul law.

"They weren't expecting it. The health care costs wind up getting shifted to us. I think it's totally justifiable to have a tax to recoup part of that windfall benefit,'' he said of a plan to slap a 14 percent surcharge on underwriting gains from health insurance policies.

The New York Health Plan Association, which represents managed health care plans, said the Cuomo plan will raises costs for both employers and residents.

Among the biggest single revenue raisers is something Cuomo called an "opioid surcharge" of 2 cents per milligram of prescription opioids sold in New York that he said will be paid by manufacturers to raise $170 million to help combat the drug addiction problem.

"Opioid manufacturers have created an epidemic,'' he said of the need for the tax.

Cuomo budget raises $1 billion in new taxes to pay for spending plans

Cuomo budget short on new economic development initiatives

Cuomo proposes 3 percent more for schools; education groups look for more

Offering few details, Cuomo says he will continue funding free tuition plan

Cuomo's budget proposal targets algae blooms

___

(c)2018 The Buffalo News (Buffalo, N.Y.)

Visit The Buffalo News (Buffalo, N.Y.) at www.buffalonews.com

Distributed by Tribune Content Agency, LLC.

Older

Hoyer Statement on the Increase of Americans Without Health Insurance Under the Trump Administration

Newer

Hearing begins in lawsuit contesting suicide ruling in Canton firefighter’s death

Advisor News

  • How advisors can prepare clients for an uncertain retirement landscape
  • Investors aren’t waiting out uncertainty
  • Transamerica and Advo(k)ate Advisors launch pooled employer plan
  • ‘I wish I’d met him sooner:’ Karlan Tucker remembered for integrity, faith
  • Why women must be more engaged in investing
More Advisor News

Annuity News

  • Immediate Care Plan: A new solution for funding LTC
  • Delaware Life Launches a New Bonus Fixed Index Annuity Built for Growth, Protection, and Flexibility
  • LIMRA: Annuity sales set new quarterly record with $123.9B in Q2
  • CANNEX names Gary Baker as its new CEO
  • Corebridge adds options to its Power Series of indexed annuities
More Annuity News

Health/Employee Benefits News

  • Studies from University of Washington Reveal New Findings on Hepatitis C Virus (Comparative Evaluation of State-Level Subscription-Based Payment Models for Hepatitis C Drugs): Liver Diseases and Conditions – Hepatitis C Virus
  • Colorado House Candidate Manny Rutinel Sponsored Legislation Forcing Health Insurers To Cover Sex Changes For Kids
  • Oregon regulators plan to trim health insurance rate hikes, but premiums are still set to rise
  • New dashboard tracks Kansas Affordable Care Act enrollment by legislative district, county
  • How the loss of Haitian TPS will affect medical care in South Florida
More Health/Employee Benefits News

Life Insurance News

  • Vincent Esparza CFP, CLU joins Wilde Wealth Management Group as Senior Wealth Advisor
  • NCOIL summer meeting sets attendance record
  • Mercer Advisors Unveils Second Generation of Aspen, its AI-Enabled Platform for Fiduciary Family Offices
  • Lincoln Financial Announces Reinsurance Transaction with Talcott
  • Paperclip Partners with National Life Group to expand Secure Data Exchange and Carrier Network for Distribution
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Ibexis Announces Expanded Bank Relationships and New Index Options for FIA Plus® and WealthDefender® Series
  • Agent Review Launches Video AI Identity Verification to Help Protect Insurance Professionals, Consumers and Public Trust
  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet