Top-earning New Yorkers could pay 14.7% income tax, the highest in the US, under new proposals from Cuomo
New York Cityresidents may have to pay 14.7% income tax, Gov. Cuomo warned Tuesday.
- This would be the highest income tax in the US, ahead of California in second place.
- A tax hike depends on whether Washington helps plug
New Yorkstate's budget deficit, partly caused by the COVID-19 pandemic, Cuomo said.
New York City's top earners may soon face the highest income tax rates in the country if the White House doesn't help the state recover from its $15 billion deficit, Gov.
As part of a 2022 budget proposal announced Tuesday, Cuomo said he may have to raise taxes to 10.86% for the state's wealthiest earners. On top of local taxes, this could leave some residents paying 14.7%
Cuomo's proposal would temporarily increase wealth tax on taxable income above $5 million, scaling based on how much people earn. For people with salaries above $100 million, the temporary tax would be 10.86%. The current tax rate for these people is 8.82%.Combined with local taxes, New York City's top earners would have to pay 14.7% income tax. The current highest rate of income tax in the US is California at 13.3%, Cuomo said.
If the government grants the state the full $15 billion, it would enact a $1.3 billion rent relief program, create a $130 million fund to support small businesses damaged by COVID-19, and invest in free legal consultations to undocumented New Yorkers.
"We have a plan in place, a strength that we have not had before and I believe our future is bright, but Washington must act fairly if we are to emerge on the other side of this crisis," Cuomo said.
New York's $15 billion deficitThe $15 billion deficit is the highest in New York's history, Cuomo said. The state's biggest deficit prior to this was $10 billion, which Cuomo said was "very very hard" to manage.
During the address, Cuomo attributed New York's deficit to two causes. Alongside the cost of COVID-19, which caused the state's revenues to fall by $5.1 billion, he said New York had been "assaulted by the federal government" over recent years.
"New York was used as a political piñata for this federal government," he said, referring to the "hyper-political" administration, without elaborating.New York state confirmed its first case of COVID-19 in Manhattan last March, although scientists say New York City likely had COVID-19 infections in mid-February. The state soon became the epicenter of the US' first wave of COVID-19, and this has had a massive impact on its businesses.
The city's theater industry has been decimated, too, with all Broadway shows suspended until at least May 30, affecting almost 100,000 workers.
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