New York reaches a $ 212 billion budget deal that would increase taxes on high earners

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Governor Andrew Cuomo and New York lawmakers have agreed on a $ 212 billion state budget package that will legalize online sports betting and increase taxes on high earners.

Provisions in the package include initiatives to help the state recover from the COVID-19 pandemic – but critics argue the tax increases could cost New York City’s tax revenues as high earners flee to lower-tax areas.

The tax increases are estimated to generate more than $ 4 billion in additional revenue each year through 2027, while the state is significantly increasing spending.

The income tax rate would increase from 8.82% to 9.65% for people earning more than $ 1 million a year – and for couples earning more than $ 2 million, the New York Post reported.

The eleventh hour budget would also create two new income brackets that would tax people who earn more than $ 5 million at 10.3% and those who earn more than $ 25 million at 10.9%, the outlet reported.

Wealthy New Yorkers would, in fact, be taxed higher than any other state, including California, after the local and state income tax rates are combined, The New York Times reported.

New York lawmakers have agreed on a $ 212 billion state budget package that would legalize online sports betting and increase taxes on high earners

New York lawmakers have agreed on a $ 212 billion state budget package that would legalize online sports betting and increase taxes on high earners

Warring New York Governor Andrew Cuomo praised the budget deal in a statement released Tuesday afternoon

Warring New York Governor Andrew Cuomo praised the budget deal in a statement released Tuesday afternoon

Warring New York Governor Andrew Cuomo praised the budget deal in a statement released Tuesday afternoon

Now gambling smartphone apps are allowed to bid on gambling licenses as mobile sports betting is expected to bring in nearly $ 500 million a year to New York

Now gambling smartphone apps are allowed to bid on gambling licenses as mobile sports betting is expected to bring in nearly $ 500 million a year to New York

Now gambling smartphone apps are allowed to bid on gambling licenses as mobile sports betting is expected to bring in nearly $ 500 million a year to New York

New York State would also increase corporate franchise taxes for companies bringing in more than $ 5 million in annual revenue from 6.5% to 7.25% through 2024, the New York Post reported.

The package includes $ 2.3 billion in federal funds to help tenants with rent and $ 1 billion in subsidies and tax breaks for small businesses badly affected by the coronavirus pandemic, outlets reported.

It also creates a $ 2.1 billion fund to give a one-time check to illegal immigrants who were not eligible for federal stimulus checks or unemployment benefits, The New York Times reported.

The New York Post reported that the undocumented workers could each receive as much as $ 15,600 in unemployment benefits or $ 3,200 if they have only partial proof of residence in New York by March 27, 2020.

The program initially included ex-cons, but sources told the New York Post that those provisions are no longer included.

The deal gives homeowners who earn less than $ 250,000 some property tax and allocates $ 250 million for the NYC Housing Authority, which provides affordable housing for low- and moderate-income people.

It also includes $ 100 million to convert hotels and other vacant properties into affordable homes, the Times reported.

Democrat Liz Krueger, chair of the Senate Finance Committee, said the tax increases are expected to hit 50,000 taxpayers, the outlets reported.

“This is not a tax increase for the vast majority of New Yorkers,” Krueger said.

“It’s a relatively small one, about 50,000 taxpayers who are on the richest side of the scale, even during a pandemic and economic collapse.”

The budget deal will also authorize deleted mobile sports betting proposals to speed up casino development near New York City, The New York Times reported.

Mobile sports betting is expected to bring nearly $ 500 million a year to New York, outlets reported.

Now gambling smartphone apps are allowed to bid on gambling licenses. Lawmakers had previously tried to allow casinos to run mobile gambling activities, which would then pay fees to New York State.

Democrat Senator Joseph Addabbo Jr. sponsored the legislation, saying that bets could start in time for “the start of the NFL season,” according to the New York Post.

State Assembly Chairman Carl Heastie, a Democrat, told the US New York Daily News that package would benefit all New Yorkers.

“Budgets are a statement of values, and in my two decades of service to the people of New York, I can’t think of a more far-reaching and impactful budget than this,” said Heastie.

Warring New York Governor Andrew Cuomo praised the budget deal in a statement released Tuesday afternoon, the Daily News reported. The late budget was due on April 1, delaying thousands of paychecks for state officials.

“ Thanks to the state’s strong fiscal governance and relentless drive to get the federal support the pandemic demanded, we have not only balanced our budget, but are also making historic investments to reinvent New York. build and renew in the wake of the worst health and economic crisis in a century, ”said Cuomo.

Democratic mayoral candidates Andrew Yang and Ray McGuire, a former Citigroup executive, have said that New York City could lose revenue if big earners flee tax increases, the New York Post reported.

Republican party chairman Nick Langworthy called the budget ‘woke madness’.

Democrats are on the verge of approving a budget that will increase taxes on New Yorkers and businesses by $ 4 billion, while enacting a $ 2 billion fund that will provide $ 25,000 disbursements to illegal immigrants, ” Langworthy said Tuesday to the Times.

Andrew Rein, the chairman of the tax watchdog group Citizens Budget Commission, told the Daily News that “the tax increases are simply unnecessary and economically risky.”

“In addition, the tax increases are an incentive for heavily taxed New Yorkers to decide whether or not to return to the state, and increase the cost of doing business here,” Rein said.

Rein told the New York Post that President Joe Biden’s $ 1.9 trillion COVID-19 aid package set aside $ 12.6 billion to save the state, but lawmakers failed to “ take the opportunity presented. by properly utilizing the infusion of funds ”.