Syracuse, NY – New York corporate groups criticize temporary corporate tax rate hike in new state budget.
The budget agreement between the legislature and Governor Andrew Cuomo for the 2022 fiscal year provides for a surcharge on the corporate tax rate, which for taxpayers with business income of more than $ 5 million for three years goes from 6.5% to 7.25% for three Years is raised.
For companies making less than $ 5 million, the rate remains at 6.5%.
The changes are expected to raise $ 750 million in fiscal 2022 and $ 1 billion in fiscal 2023.
In addition, the budget for high earners provides a surcharge through tax year 2027 that sets a maximum rate of 10.9% for all applicants earning more than $ 25 million. The addition will be $ 2.8 billion in fiscal 2022 and $ 3.3 billion in fiscal 2023.
“The final budget agreement includes a significant increase in state government costs and, given a significant inflow of federal funds, an unnecessary billions of dollars in tax hikes, including a corporate tax hike,” said Heather Briccetti, president and CEO of the state’s Business Council New York said in a statement on Wednesday.
“In any case, the additional spending and tax hikes were due to legal requirements that went well beyond the proposals of the executive budget. While it was encouraging to add targeted support for corporate sectors hardest hit by COVID shutdowns and government restrictions, we fear that the additional spending and taxes will sadly help New York State do more than just recover. “
“While this year’s state budget includes some positive measures, such as helping small businesses, tax breaks for middle-class citizens, and significant funding for local roads and bridges, the inclusion of massive tax hikes and costly mandates is a serious risk.” said Justin Wilcox, chief executive officer of Upstate United.
“The introduction of $ 4 billion in new taxes will ultimately hurt New York’s recovery efforts. This immense tax burden will drive more New Yorkers out of the state. Joining the 1.4 million former residents who fled to other states in the past decade. Taking a massive tax and spending approach to a responsible growth plan is the wrong choice at the wrong time. “
The Syracuse-based CenterState CEO weighed in as well.
“One of the top points of concern is the corporate tax rate hike to increase revenue,” said Rob Simpson, President and CEO of CenterState CEO, in a statement. “Right now, businesses across the state are recovering from unprecedented troubles caused by the COVID-19 pandemic, and tax hikes will put unnecessary strain on these economic engines.”
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