ALBANY, NY – New York Governor Andrew Cuomo and state lawmakers are nearing a budget deal that would increase corporate and income taxes by $ 4.3 billion a year and encourage top earners in New York City to pay the highest combined local tax rate in the country.
The Democratic leaders of the State Assembly and Senate briefed lawmakers on Saturday about the tax plan, which was one of the last parts of a state budget of around $ 200 billion. The additional tax revenue would be used to increase school aid and provide new funding for undocumented immigrants, small businesses and renters who are behind on their rent.
Legislators were notified of a plan that would increase income tax rates from 8.82% to 9.65% if individual applicants reported income greater than $ 1 million and joint applicants reported more than $ 2 million .
The plan would also add two new tax brackets. Income over $ 5 million would be taxed 10.3% and income over $ 25 million would be taxed 10.9%, respondents said, and the new tax rates would expire in 2027.
The highest income tax in New York City is 3.88%, which means the city’s millionaires would face a combined state and city income tax of between 13.5% and 14.8% under the new plan. California currently has the highest top tax rate, 13.3% on income over $ 1 million.