Hochul Proposes ‘Tiramisu of Bad Public Policy’ by Handing Out $3 Billion in ‘Inflation Refund’ Checks to New Yorkers

Governor Hochul is proposing to help New Yorkers struggling from higher prices by pumping $3 billion of taxpayers’ money into the state economy in the form of “inflation refund” checks.Ms. Hochul shared the plan on Monday as part of a series of proposals she will make in her State of the State address. In a statement, the governor said, “My agenda for the coming year will be laser-focused on putting money back in your pockets, and that starts with proposing Inflation Refund checks of up to $500 to help millions of hard-working New Yorkers. It’s simple: the cost of living is still too damn high, and New Yorkers deserve a break.”She said New York has generated “unprecedented revenues through sales tax” stemming from higher costs of goods due to inflation. Under the plan, individuals earning less than $150,000 a year would get a $300 check, and families earning less than $300,000 a year would receive a $500 check. The state estimates that 8.6 million New Yorkers would receive the payments.Congressman-elect George Latimer said Ms. Hochul’s plan is a “much-needed, bold step toward easing the financial burdens faced by New Yorkers.”“There are tough conversations happening at kitchen tables all across New York, and this initiative aims to lighten those conversations while reflecting a deep understanding of the challenges our residents face and a commitment to ensuring economic relief reaches every corner of the state,” he added. It would likely take some time for the payments to reach New Yorkers. Ms. Hochul is proposing the checks as part of the state’s budget negotiations, and lawmakers would have to get on board with allocating $3 billion for the proposal, which could potentially be spent on other programs. The idea of sending out checks to help people struggling financially has been tested in recent years, and it has been blamed, in part, for sending inflation soaring since the outset of the Covid pandemic. In 2021, President Biden signed the roughly $2 trillion American Rescue Plan, which sent $1,400 checks to Americans, months after President Trump sent out $1,200 and $600 checks.Economists say Mr. Biden’s checks, as well as other Covid stimulus policies, contributed to higher prices. Analysts at the Federal Reserve Bank of San Francisco estimated that the Covid stimulus policies added roughly three percentage points to inflation in 2021. Critics of Ms. Hochul’s plan say it will not provide lasting relief for New Yorkers. A state and local policy analyst at the Manhattan Institute, Paul Dreyer, tells the Sun, “Governor Hochul’s proposal offers a fleeting fix rather than addressing the root causes of inflation that burden New Yorkers.”“A one-time payment might provide temporary relief, but real reform — like lowering income taxes, updating outdated credits, and indexing tax brackets to inflation — would offer meaningful, lasting benefit,” he said. “Without such changes, inflation will continue to erode purchasing power over time.”Meanwhile, the research director at the Empire Center for Public Policy, Ken Girardin, told the Journal News that Ms. Hochul’s plan is a “tiramisu of awful public policy.”“It’s a sordid tradition in New York of elected officials wanting gratitude. We may have strong sales tax growth, but Medicaid and school aid costs are out of control,” he said.Mr. Girardin implied the policy would lead to more inflation as he responded to a post on X about the proposal with the question, “What’s that thing that happens when more money chases the same amount of goods and services?”At the same time that Ms. Hochul is proposing handing out billions of dollars, she is also planning on implementing controversial congestion pricing for tolls in the busiest parts of Manhattan during peak travel times.She put the plan, which would have charged drivers a $15 toll, on hold in June because she said it would be too expensive for New Yorkers grappling with inflation. However, after the election and after receiving final approval from the Federal Highway Administration last month, she announced the plan would go into effect in January. The tolls will be lower than originally planned, costing most drivers $9. The governor argues that the lower price of the new toll will “save” commuters around $1,500 a year.

Hochul Proposes ‘Tiramisu of Bad Public Policy’ by Handing Out $3 Billion in ‘Inflation Refund’ Checks to New Yorkers

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