Possibility of Higher Taxes for New York’s Wealthiest

By Dylan Turkewitz

New York City, New York

The plan would raise income taxes from 8.82% to 9.65% for individuals earning more than $1 million of income annually and add two new tax brackets (Photo Credit: NYCgo)

The millionaires of New York may have their taxes raised. According to Daily News, Governor Andrew Cuomo, among other New York State lawmakers, is set to decide on a $200 billion budget that would require more money from the state’s wealthiest.

The taxes would be funded to aid schools, undocumented immigrants, tenants who are unable to pay their rent and small businesses, The Wall Street Journal reported.

The New York Times reported that Governor Cuomo formerly opposed this decision, fearing that higher taxation would steer businesses out of New York. Yet, many believe this move has proven to be necessary due to the economic loss from COVID-19. The budget would support workers and the public school system with more than $1 billion, according to Daily News. The raised taxes will not only be imposed on New York’s wealthy individuals, but also on corporations to collect an extra $5 billion dollars annually.

Senator Andrea Stewart-Cousins (D-NY) said, “This budget process is a major opportunity to help lead New York through the ongoing dark days of the COVID-19 pandemic and lay the foundation to grow stronger in the future,” Daily News reported. The funds are not only to repair the damage due to the pandemic but to set a robust foundation for the future.

According to The Wall Street Journal, the plan would raise income taxes from 8.82% to 9.65% for individuals earning more than $1 million of income annually, as well as joint filers earning more than $2 million. The proposal would also add two new tax brackets, but they are said to expire by 2027: those earning over $5 million annually would be taxed at 10.3%, while those earning more than $25 million would be taxed at 10.9%. When added to New York City’s largest income tax rate of 3.88%, the city’s wealthy residents would be paying between 13.5% and 14.8% in city and state taxes.