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Many economic experts panned New York’s governor. Kathy Hochul’s “inflation rebate” that she plans to distribute to qualifying New Yorkers It is part of the State of the State 2025 initiative.
Last week, Hochul proposed $3 billion in direct payments to about half of the Empire State’s 19 million residents, split between $300 for single taxpayers making up to $150,000 a year and $500. For joint filers who make double the amount
“Due to inflation New York is thus generating unprecedented revenue through sales taxes. Now we are returning that cash to middle class families,” Hochul said in a statement announcing the proposal.
However, some economists and economics experts, such as Andy Puzder, say the move is just to “redistribute[money]to people. To get people to vote for them.”
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Former Hardees/Carls Jr. executive Andy Puzder spoke in Maryland. (Reuters)
“If you really want to help everyone. And if you have excess sales tax You lower the sales tax,” adds Puzder, former CEO of Hardee’s and Carl’s Jr.’s parent company, CKE Restaurants. “The math isn’t difficult,” he added.
Puzder is an economics professor and senior public policy researcher at Pepperdine University who was considered to be secretary of labor in the first Trump administration.
At his job at CKE Restaurant Pusder increased Average franchise sales volume for then-struggling Hardee’s went from $715,000 in 2001 to more than $1 million a decade later.
US economy It’s in trouble because of the same types of policies that Hochul and other tax and spending Democrats are proposing, he said, adding that President Biden’s American Rescue Plan is what ignited nationwide inflation in the first place.
“If you cut taxes Fewer people will leave the state,” he added. Meanwhile, New York has decreased the number of House seats and electoral votes in the Census over the decade.
Puzder noted that some top Democrats have warned their own leaders about such “refunds” from the government, citing former President Bill Clinton’s treasury chief, Lawrence Summers, as warning the party. The Biden administration says a similar handout in 2021 would result in higher inflation.
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Then-Rep. Dave Brat, R-VA, at the White House (Reuters)
Former Sen. Dave Brat, R-Va., economist and current vice chancellor of Liberty University in Lynchburg It refers to Nobel laureate Milton Friedman’s assertion that inflation is a monetary phenomenon.
So, he said, in Hochul’s case, the better fix for inflation isn’t in Albany. But in Manhattan
“Inflation has to do with how much money the Federal Reserve prints. If you want money back from the government, that’s fine. But she’s in a unique position in New York where the Fed has a desk head there and If you want to fix inflation, you have to go to the Federal Reserve.”
He added that $500 for a family is considered It’s a “small symbolic move against huge, hidden taxes,” noting that with real inflation at about 22% over the past four years, the purchasing power of $500 in 2020 is worth just $390.
Brat added that Democrats’ penchant for such “refunds” puts Republicans at a continued political disadvantage because the GOP needs to “compete with Santa Claus” by handing out gifts versus accurate reminders. Let people “eat spinach”
Economist EJ Antoni echoes some of the sentiments regarding the payback caused by inflation. He said that what makes the United States What gets into inflation in the first place is excessive government spending.
“So the idea is that we will add another government expenditure. You just create a response,” Antoni said.
“Now this does not mean that New York State alone will cause inflation. Inflation comes from the central government because the central government is a government that cannot create money and can simply print money for nothing. But at the same time, right now, you’re still talking about increasing the cost of living for New Yorkers. In a different way,” he said.
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Then-Lt. Gov. Kathy Hochul looked to then-Gov. Andrew M. Cuomo of New York. (AP)
“Additional government spending will have to be paid for, one way or another.”
Antoni added that he could see such payments to the public “snowball” into more and more payments. This will lead to higher taxes required to finance it.
Anthony also said Hochul’s proposal differs from then-President Donald Trump’s COVID-era checks because it comes at a time when people need it. “Survival money” amid stay-at-home orders and employment sector shutdowns
“If the problem is that we need to lower people’s living costs, The best way to do that is to lower their taxes. without having to pay any more money from the government,” he said.
Fox News Digital also reached out to the left-leaning Brookings Institution to ask for more diverse perspectives on Hochul’s movement.
Fox News Digital has also reached out to Hochul’s office for comment. But no response was received within press time.
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