New York's $212 billion state budget raised tax rates on millionaires and corporations, delivering billions of dollars to the state's coffers that will be used to boost funding for schools and other facets of the spending plan.
But the tax changes could be just getting started as a range of measures are still under consideration. Some bills could be approved this year, like a proposal to fight climate change that would include a tax on polluters in New York. Still others may have to wait for a debate in next year's budget, like instituting new taxes on financial markets.
Either way, there's still a drive in the Legislature, firmly controlled by Democratic supermajorities in both chambers, to boost revenue for the state.
Senate Majority Leader Andrea Stewart-Cousins on Tuesday in a news conference did not rule out the passage of the climate change measure that currently includes a carbon tax.
"I know that it's important to rid the planet of pollution and there are a variety of ways to do it and certainly the CCIA (Climate Change and Community Investment Act) is something to be considered," she said.
The budget did include measures meant to benefit middle-income earners, including a property tax credit for households that earn $250,000 and less as well as the continued phase in of a rate for the middle class.
Gov. Andrew Cuomo on Monday highlighted those tax actions, but urged Congress to fully repeal the $10,000 cap on state and local tax deductions, often referred to as SALT. Doing so, he's argued, would turn the tax increases on the rich in the budget into a tax cut.
"There's another big federal package being proposed," Cuomo said. "They must repeal SALT."
The fight over the deduction cap is a hangover from the 2017 tax law approved during then-President Donald Trump's administration and with Republicans in control of Congress.
Lawmakers like Rep. Tom Suozzi on Long Island and suburban New York City county executives have made a public push to end the cap. Suozzi in particular has released a letter signed by nearly all of the state's House delegation pledging to oppose new tax legislation unless the cap is repealed.
Still, the momentum for doing so has not ramped up in Washington as Congress debates new taxes to partially offset the cost of a $1.9 trillion infrastructure plan as envisioned by President Joe Biden.
In Albany, progressives are expected to continue to push for the taxes that did not get done in this year's budget, including new surcharges on investment income as well as second homes.
Business organizations have raised concerns the tax increases will stall the state's economic recovery and lead to an exodus of people from the state. New York relies on a small number of wealthy filers for much of its revenue under the personal income tax.
One millionaire not leaving is Morris Pearl, a member of the Patriotic Millionaires.
"I'm here in my apartment on Park Avenue," he said. "This is where I plan to continue living. Yeah, I can live wherever I want to live I choose to live in New York. Anybody who chooses where to live based on tax rates, they don't live in New York."
Pearl's group is composed of wealthy people who are supportive of increasing taxes — even if it's their own. The current tax structure in New York, Pearl argues, continues to benefit people like him who have their wealth largely tied up in the financial markets, not middle class people.
"The wealthy people — their wealth is in the stock market," he said. "They don't pay a tax based on their wealth like middle class people do and I think we need to come up with some system to tax the rich people."