ALBANY, NY – With the New York State Assembly and Senate’s one-house budget resolutions out, many are wondering what that could mean for future tax rates.
NewsChannel 34’s Corina Cappabianca breaks down how much they would raise and who it would affect.
The proposals raise about $7 billion in revenues.
They’re focused on high income earners and corporations.
Fred Kowal with United University Professions who has advocated for raising taxes on the wealthiest New Yorkers, says the legislature is taking a broad-spectrum approach.
((Fred Kowal, United University Professions President)) Corporate tax, estate tax, personal income tax, pied-à-terre, so by approaching it in that way they are not just hitting one sector of a potential revenue source heavily, they’re spreading it out more widely.
Under the plans, New Yorkers making more than $1 million would pay 9.85 percent in income taxes.
Those making between $5 million and $25 million would pay 10.85 percent.
And those making over $25 million would pay 11.85 percent.
There’s also a proposal to increase the corporate franchise tax rate.
((Fred Kowal, United University Professions President)) This approach of raising revenue from the ability to pay, over a million dollars and higher, those are the folks who have the resources, can pay, have the ability to pay and that will benefit the entire state.
While there are no direct tax increases for working class New Yorkers, Republicans and even the Governor have voiced concerns.
((Andrew Cuomo, Governor)) How you raise revenue can actually raise revenue or can cost you revenue. If you’re not careful the way you do it, you may actually lose money for the state because businesses and residences will make changes.
Kowal believes the Governor will ultimately “see the necessity to move forward” with increases noting how united the legislature has been on the issue.