Top New York business leaders on Tuesday urged state leaders to drop proposed state tax increases, arguing the hikes would derail the Big Apple's recovery from Covid-19.

The Partnership for New York City released a letter from 250 executives, including heavy hitters such as JPMorgan Chase Chief Executive Jamie Dimon and Pfizer CEO Albert Bourla that said tax increases contemplated in state capital Albany would drive away businesses and talent from New York City.

The group said the recent passage of President Joe Biden's $1.9 trillion fiscal package included enough funding for New York to avert the need for local taxes, which could mar the city's chances to "reassamble the deep and diverse talent pool that makes New York the greatest city in the world," the letter said.

"For better or worse, the pandemic has demonstrated that our workforce is more mobile than we ever imagined," said the letter to New York Governor Andrew Cuomo, Senate Leader Andrea Stewart-Cousins and House Speaker Carl Heastie.

Leading New York executives warned that higher state taxes could derail the city's economic recovery
Leading New York executives warned that higher state taxes could derail the city's economic recovery AFP / Angela Weiss

"Many members of our workforce have resettled their families in other locations, generally with far lower taxes than New York, and the proposed tax increases will make it harder to get them to return."

Stewart-Counsils and Heastie have backed legislation that would pump more than $200 billion funds into New York programs to support small businesses, arts revitalization and rent relief.

The plan envisions tax hikes on wealthier New Yorkers, as well as tax surcharges on capital gains and corporate franchises.

These tax increases go beyond those proposed by Cuomo, who has been politically weakened in recent weeks following accusations of sexual harassment and inappropriate touching and allegations the governor engaged in a cover-up of nursing home deaths from Covid-19.

Other signers of the letter included BlackRock Chief Executive Larry Fink, ViacomCBS Chief Executive Robert Bakish, JetBlue Chief Executive Robin Hayes, Citi Chief Executive Jane Fraser and Goldman Sachs Chief Executive David Solomon.

Coronavirus