From the Morning Memo:

As he campaigned for Democratic state Senate candidates, Gov. Andrew Cuomo accused Republicans of fear mongering on issues like hiking taxes.

In doing so, Cuomo had his endorsed candidates back a pledge to “hold the line” on taxes he’s sought to restrain over the last eight years.

But now, Democrats in January will be taking over the state Senate with a comfortable majority.

In the meantime, activists on the left are pressing Democrats in the Legislature to raise taxes on the rich, as current rates on millionaires are due to expire at the end of 2019.

“It actually needs to be expanded,” said Billy Easton of the Alliance for Quality Education. “We should add brackets for people making $2 million, $5 million, $10 million.”

The extra money from tax increases could be spent on schools or mass transit needs in New York City.

“This should be the moment New York is leading the country and showing what a progressive vision is,” Easton said.

Retaining the current rate will not impact the $3 billion budget deficit projected for the fiscal year beginning April 1.

The tax rate has been re-approved several times in the past, first as a way of overhauling tax rates as the governor and Legislature faced pressure in late 2011 to continue the millionaires tax from movements like Occupy Wall Street.

Lawmakers, as well as Cuomo, may be wary of raising taxes as upper income earners are already hurt by the federal government’s $10,000 cap on state and local tax deductions. The cap on SALT as it’s known especially hurt suburban property taxpayers who are likely to earn more and pay the highest levies in the country.

At the same time, Cuomo has maintained a limit on spending increases in the budget year over year at 2 percent.

“The question now is what’s he going to do? Because on the one hand, the new federal tax law has significantly increased the cost of New York income taxes almost entirely to high income people,” said EJ McMahon of the Empire Center For New York State Policy.

New York relies heavily on the personal income tax to fund its budget. Predominantly, that revenue comes from the richest households in New York, but if those highly mobile people move out of state, New York’s finances could be in trouble.

“Small behavorial changes and location changes and migration trends could make differences of hundreds of millions of dollars,” said McMahon.

Incoming Senate Majority Leader Andrea Stewart-Cousins, has said her conference is not supportive of raising the existing tax rates.

“What I have unequivocally said we’re not coming in there to raise peoples’ taxes,” she said Thursday in an interview on WBAI. “We understand New York is a big state.”