New York Business Leaders Urge "Withdraw New York State Tax Increase Proposal"

Jamie Dimon, Chairman and CEO of JPMorgan Chase
Photo by Reuters Yonhap News

[Asia Economy Reporter Park Byung-hee] Leading business figures in New York City have sent a letter to New York Governor Andrew Cuomo opposing the state's tax increase plan.

According to major foreign media on the 23rd (local time), the New York City business group 'Partnership for New York' demanded the withdrawal of New York State's tax increase plan in the letter. About 250 people signed the letter, including Jamie Dimon, Chairman and CEO of JP Morgan Chase; David Solomon, CEO of Goldman Sachs; and Larry Fink, Chairman and CEO of BlackRock.

They pointed out that the tax increase would put the New York economy, which is recovering from the shock of the COVID-19 pandemic, at risk again. They also argued that companies would face restructuring pressures and that the tax increase would ultimately cause significant economic losses.

Furthermore, they emphasized that the tax increase is unnecessary thanks to President Joe Biden's $1.9 trillion stimulus package. They highlighted that local governments receive federal budget support under the stimulus package.

New York State plans to impose additional taxes on high-income earners with annual incomes exceeding $5 million, anticipating financial losses due to COVID-19.

Recently, tax increases have become a hot topic in the United States. The Biden administration, which passed the $1.9 trillion stimulus package, is currently promoting an infrastructure bill expected to be worth up to $3 trillion. As the financial burden increases, the Biden administration plans to secure additional tax revenue through measures such as raising corporate tax rates and taxing high-income earners. As seen in the case of New York State, tax increases are expected to spark intense debate.

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