New York City’s top earners ‘will pay the highest tax rates in the country’ according to Andrew Cuomo’s plan
New York City’s top earners could face a massive tax increase that will make them pay the highest taxes in the country, according to a pending state budget plan.
New York Governor Andrew Cuomo and state lawmakers are nearing completion of a spending plan that will increase corporate and income taxes by $ 4.3 billion a year, the Wall Street Journal reported.
Under the so-called “millionaire tax,” income taxes would increase from 8.82 percent to 9.65 percent for individuals earning more than $ 1 million or married couples earning more than $ 2 million.
Anyone who earns more than $ 5 million would have to pay a rate of 10.3 percent, and those with an annual income of more than $ 25 million would be taxed at 10.9 percent – first time earners in those top brackets. have to deal with additional taxes.
Combined with city taxes of 3.88 percent, New York’s wealthiest would pay a combined state and local tax of up to 14.8 percent.
Combatant New York Governor Andrew Cuomo says tax increases are still needed even after the state receives $ 12.7 billion from federal stimulus package
New York’s top earners will pay the highest tax rates in the country if budget is exceeded, even higher than California’s
In addition to the increases for individuals making more than $ 1 million, new tax rates will apply to anyone making more than $ 5 million
This would make tax rates in New York higher than California, which is currently the state with the highest tax rate in the United States of 13.3 percent on income in excess of $ 1 million.
Corporate tax rates are expected to rise from 6.5 percent to 7.25 percent through 2023, the Journal reported.
State lawmakers in Albany have been engaged in intense spending plan negotiations for days and are expected to resume work Monday after a break on Easter Sunday.
The budget has been a long time coming, and government officials have warned that if it is not passed Monday, the state’s 40,000 workers this week are at risk of not being paid.
The Journal reported that the additional tax revenues would be used to pay for schools, help renters and small businesses behind with their rent, and provide funding for undocumented workers.
The New York Post Schools reportedly could receive an additional $ 1.4 billion in funding from the state, as well as money for statewide pre-K programs and expanding university education.
Last month, Congress approved Joe Biden’s $ 1.9 trillion COVID aid package, bringing New York’s state government $ 12.5 billion and New York City $ 6.1 billion.
As a result of the pandemic, the state had a budget deficit of an estimated $ 15 billion.
New York Senate Leader Chuck Schumer said he had done everything he could to get his home state a fair deal out of the stimulus package, arguing that increases in the state tax were unnecessary.
In response to the federal stimulus package, Cuomo, who opposed calls to resign after being charged with sexually harassing seven women, said that “ tax increases are on the table. ”
It’s the difference between $ 12.5 and $ 15 (billion).
And don’t get me wrong, the $ 12.5 billion is very, very helpful. But as you know, since I’ve said it a hundred and fifty times, I think we needed $ 15 billion, “said Cuomo.
Prominent New York Democrats are divided on whether the proposed tax increases went far enough.
Chuck Schumer, the Senate majority leader, said he had done everything he could to discuss stimulus packages to get a fair deal for his home state of New York.
Alexandria Ocasio-Cortez has previously called on the Cuomo government to introduce a billionaire tax to fund schools and help alleviate urban poverty
Last year, NYC Congressman Alexandria Ocasio-Cortez called on voters to pressure Cuomo and state lawmakers to pass a “ billionaire tax. ”
“It’s time to stop protecting billionaires, and it’s time to start working for working families,” she tweeted last July.
The congresswoman, whose district includes parts of the Bronx and Queens, said at the time that up to $ 50 billion in tax increases for the wealthy was needed to avoid deep cuts in schools and the needy.
New York City suffered a near-economic collapse when COVID-19 swept across the city last spring.
About 420,000 of the city’s wealthiest residents had left New York for second homes by May.
In August, Cuomo pleaded with the wealthy to return amid fears of tax hikes, saying he would “buy you a drink” and “cook dinner.”
It is estimated that the top 1-2 percent of wealthy city residents are responsible for half of the state’s personal income taxes.