Elmont Online

ALBANY — Gov. Andrew Cuomo says changes to the state tax code are among the options he might put before the Legislature when it returns to Albany in January.

So far, Cuomo is not offering any specifics — including whether or not potential adjustments might result in a larger tax bill for high-income New Yorkers.

The administration's consideration of tax code changes was first reported Tuesday evening by the Wall Street Journal. Cuomo spent considerable time discussing the concept — albeit in the broadest possible fashion — in two radio interviews Wednesday morning.

"I have not decided on the economic program for the state — part of which will be how do you use the tax code to create jobs?," Cuomo told Fred Dicker on Talk 1300 AM.

That was as detailed as the governor wanted to get. "You'll see my budget in seven weeks," he said when pressed for details. The governor's budget proposal for the 2012-2013 fiscal year is due to be submitted to the Legislature in mid-January.

For weeks, Cuomo's public statements on the state's economic condition — including an estimated $350 million budget gap through March and a deficit of more than $3 billion through March 2013 — have emphasized his desire to address the structural problems in the state's balance sheet as opposed to a short-term budget challenge.

The deficit, he said Wednesday, was merely a symptom: "The illness is the economy going south."

The prospect of changes to the code resulting in what Cuomo called a "fairer" system could damp down some of the heat the governor has taken in some quarters over the impending demise of the so-called "millionaire's tax," an income tax surcharge on individuals making more than $200,000 that sunsets at the end of December.

Throughout the year, the continuation of the tax has been pushed by an array of interests — from public workers unions to the Occupy protests — as a way to offset cuts to education and social programs.

Businessman and good-government reformer Bill Samuels previously called Cuomo's reluctance to extend the tax a "historic mistake," but on Wednesday offered praise for what he saw as a move that could prove to be both deft politics and worthy public policy.

"I think it's what he has to do," said Samuels, who echoed Cuomo in describing the battle over the surcharge as an overly narrow "false issue."

"New York should take a look at the fairness of its tax system — both for individuals and for business," said Samuels, who recently lectured Occupy Albany protesters on the wisdom of retooling the tax code during a visit to their encampment.

On Wednesday, Samuels suggested the governor should convene a diverse panel — perhaps including thinkers from the Occupy movement — to offer ideas. "You might find that with efficiencies, you don't have to raise rates," Samuels said.

Whether the issue was a winner or a loser for Cuomo, Samuels said, "is going to depend on the end result."

E.J. McMahon of the fiscally conservative Manhattan Institute said Cuomo didn't appear to be looking at the kind of tax increase that would bring in the sort of money surcharge supporters are hoping for — $4 billion or more.

Cuomo "is emphasizing that he is considering all his options in the context of trying to figure out what is best for the state's economy," McMahon said. " ... He didn't say anything today that indicates he's caving in to what (surcharge advocates) want."

If Cuomo's statements on his intentions were something of a Rorshach test, the legislative majorities reacted accordingly.

"We're heartened by the governor's willingness to examine the issue," said Michael Whyland, spokesman for Assembly Speaker Sheldon Silver, a Manhattan Democrat who has supported the idea of an income tax surcharge on those making more than $1 million.

"Our position hasn't changed. We support cutting taxes, not raising them," Senate Republican Majority spokesman Scott Reif said.

In a subsequent interview with Susan Arbetter of WCNY's "Capitol Pressroom," Cuomo said that as challenging as the past year has been ("You can tell by the number of gray hairs on my head"), 2012 was likely to be worse.

"I think the political environment is going to be more difficult," he said. "The extremists are more vociferous."

Rick Karlin contributed. Reach Seiler at 454-5619 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .