Additional $ 5 billion to the budget: New York will impose the highest taxes in the country

New York City lawmakers are moving closer to passing a budget that will raise billions of dollars in taxes for the richest people and big business - a move that will make the wealthiest residents pay the highest taxes in the country. Writes about it New York Post.

Sources said the budget is expected to include tax increases and additional revenues totaling about $ 5 billion.

Democratic leaders of the State Assembly and Senate reportedly briefed lawmakers on the tax plan.

According to this proposal, the richest people in New York will pay the highest combined state and income taxes in the country.

The report says New York City millionaires will face a combined local tax rate of 13,5% to 14,8%. The state currently has the highest income tax rate in the country, with an income of 13,3%, or more than $ 1 million.

On the subject: New York Changes Local Tax Filing Deadline: New Dates

According to the plan, individual applicants reporting more than $ 1 million in income and joint applicants reporting more than $ 2 million will see the income tax rate increase from 8,82% to 9,65%.

It will also entail the creation of two new tax categories: one where income in excess of $ 5 million will be taxed at a 10,3% rate, and another where income in excess of $ 25 million will be taxed at a 10,9% rate.

The report says the government franchise tax will also rise to 7,25% from 6,5% by 2023.

The additional tax revenue will be used to increase spending on schools, provide funds for illegal workers, and for small businesses and tenants who cannot pay their rent.

Earlier this month, the Senate and Assembly proposed an estimated $ 7 billion in revenues, while the Cuomo administration said the state needed about $ 2,5 billion to fund reconstruction efforts.

Fiscal observers, Democrats from suburban and upstate temperate areas, and even Senate Majority Leader Chuck Schumer of New York have argued that taxes should not need to be raised because of the billions of federal money New York received in recent years. year.

The non-partisan Citizens Budget Commission was among those who argued that New York City did not need to raise taxes to plug the holes.

On the subject: New York plans to raise taxes: what and how much

"The state looks set to accept a massive tax hike, even though it will have $ 22 billion more resources over the next two years than expected when the governor proposed the budget in January," said CBC President Andrew Rein. "These funds were enough on their own to reverse the cuts, help those who did not receive support from the American Rescue Plan, meet the education needs of the pandemic, and provide a smooth road to financial stability."

Now the state authorities are under pressure to pass the budget for the next fiscal year, which began on April 1.

Controller Tom DiNapoli warned that if the budget is not passed by Monday, April 5, nearly 40 civil servants will not be able to pay the costs and will have to delay receiving their salaries.

Negotiations are still underway on a plan to legalize mobile sports betting, which Governor Andrew Cuomo estimates could eventually bring in up to $ 500 million a year.

The budget is likely to include statewide funding for Pre-K programs, expanding tuition fees for SUNY and CUNY students, and a $ 1,4 billion increase in school aid.

An increase in grant aid for small businesses and a $ 2 billion fund for illegal migrants who lost their jobs during the COVID-19 pandemic are also expected.

Legislators and the governor have already agreed to create a $ 10 million fund in the budget to combat discrimination against Asian Americans in the wake of the recent brutal attacks on their community.

The money will be distributed to communities and social groups to help eliminate bias and curb crimes against Asian Americans. A key component will be witness training programs to help identify and report discrimination.