A MAN, A PLAN, A CANAL: The Panama Canal probably hasn’t been much of a factor in gubernatorial politics since the days of Teddy Roosevelt. But in a statement to Playbook, Gov. Kathy Hochul’s campaign on Thursday mocked potential Republican rival Rep. Mike Lawler for signing onto a bill that would enable the U.S. to repurchase the canal. The canal has been a preoccupation of President-elect Donald Trump over concerns of foreign influence at the crucial passage. So Lawler’s signing onto the measure was a chance for Team Hochul to tie the Hudson Valley lawmaker to a MAGA-aligned issue — a potential taste of what’s to come if he launches a bid for governor. “Mike Lawler should stop kissing Trump’s ass and start working on lowering costs and fully repealing the SALT deduction for New York families,” said a Hochul campaign spokesperson, referring to the fight over state and local tax deductions. “He's deeply unserious.” The recent conversations over the canal and Greenland stem from the worry that hostile countries are trying to exert influence — and potentially harm U.S. interests. A Lawler spokesperson in response derided Hochul for elevating Linda Sun, who was later accused by federal law enforcement of acting as an undisclosed foreign agent of the Chinese government. Sun has pleaded not guilty. China doesn’t control the canal, but like the U.S. heavily uses the waterway. “So, Kathy Hochul would like China to control the Panama Canal and have the United States take a back seat to China in the Western Hemisphere?” said Lawler spokesperson Nate Soule. “No wonder she had a Chinese spy working in her office! What’s next, mandating the state curriculum be taught in Mandarin?” — Nick Reisman HEDGE FUNDS AND HOUSING: State Senate Finance Committee Chair Liz Krueger told Playbook Thursday she’s encouraged by Hochul’s desire to crack down on private equity snapping up housing. Krueger, a Manhattan Democrat, has backed legislation with Assemblymember Michaelle Solages that would place a 50 percent tax on the fair market value of any single-family home purchased by a hedge fund or similar entity. Hochul’s proposal would remove some tax benefits as well as block the funds from bidding on homes for the first 75 days a property is on the market. Broadly they share the same goal – to address a problem that advocates have warned is leading to higher housing costs across the country. “We want to get these houses back on the market and be bought by actual New York homeowners,” Krueger said in an interview. Krueger said she planned to speak with Hochul’s office about elements of the proposal. The powerful Real Estate Board of New York said Hochul’s plan could hurt the goal of expanding housing in the state. "While we intend to closely review the governor's proposal, this is yet another example of policy that will stifle investment in housing in New York,” President James Whelan said. “We encourage elected officials to instead focus on solutions that will actually improve the quality of housing across the state." — Nick Reisman DEBT WATCH: There’s light at the end of the tunnel for the lingering unemployment insurance debt surcharge that has bedeviled New York employers in the aftermath of Covid. At issue is $6 billion in debt New York state owes to the federal Unemployment Insurance Trust Fund after joblessness spiked in the early months of the pandemic. Employers have been shouldering the burden of the debt with a payroll tax surcharge. Speaker Carl Heastie this week called for some relief — especially for small businesses. “We must find a way to eliminate the money owed to reduce the burden on small businesses,” he said. “In doing so, we can also increase the benefit to workers who become unemployed so that they can continue to support themselves and their families.” That heartened business advocates who have pressed for help. The Business Council, for instance, has set up a clock online to demonstrate how long the issue has plagued employers. “We appreciate the speaker, recognizing the UI debt as a problem for employers,” Business Council spokesperson Pat Bailey told Playbook. “This debt paid solely by state employers is holding many small businesses back from growing and expanding our economy.” — Nick Reisman More from Albany: — New York lawmakers want to protect the goals of a “climate superfund” law ahead of likely legal challenges from energy companies. (Gothamist) — An Oneida County judge who engaged in a profane rant at a high school graduation party in 2022 was removed from office. (Spectrum News) — State lawmakers are pushing to develop seven acres of land on a state office complex in Albany. (Spectrum News)
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