| New York Governor Andrew Cuomo struck a deal with state legislative leaders to extend the so-called Millionaires' Tax and to replace New York's largely flat personal income tax structure with a more progressive structure. Coupled with the extension of the Millionaires' Tax is a tax cut for the middle class. Thus, average New Yorkers will see more money in their pockets, while the state nonetheless increases its revenue. And, remember, this comes with a divided legislature, where Democrats hold an overwhelming majority in the Assembly, but Republicans narrowly control the State Senate. |
According to the New York Post:
New Yorkers earning between $40,000 and $150,000 would pay state income taxes at a rate of 6.45 percent, while those making $150,000 to $300,000 would pay 6.65 percent. Both of those rates are below the 6.85 percent rate that's scheduled to be in effect next year.
Those making $300,000 to $2 million would pay 6.85 percent, while those making over $2 million will pay 8.82 percent, as first reported today by The Post.
Overall, the deal increases state revenue by $1.9 billion, closing half of a projected $3.8 billion budget deficit. There's still much to go, and, certainly, Cuomo's first year in office has been far from perfect in much of the slashing done in the state budge. Still, this represents an about face from previous pledges that he wouldn't raise taxes and was going to let the Millionaires' Tax expire at the end of the year.
And if one wonders what helped nudge Governor Cuomo along in changing his mind on taxing the millionaires, The New York Times gives us a pretty good idea:
But Mr. Cuomo has come under increasing pressure from Democrats and labor unions in recent weeks as the sluggish economy weakened the state's financial picture, widening next year's projected state budget gap to as much as $3.5 billion, and as the Occupy Wall Street movement directed more attention to the issue of income inequality.
I guess we can say this is the first time we've seen what the occupy movement has been fighting for enacted into law. Our leaders are starting to realize that there is anger out there and that they have to respond to the public pressure. Whether it's Andrew Cuomo striking a deal to keep the Millionaires' Tax and cut taxes for the middle class or it's Frank Luntz warning the GOP or it's President Obama giving the Republicans a taste of their own medicine and framing the election about the middle class, we're starting to see those results. People here know where I stand on President Obama and the Democratic Party, but one thing we all agree on is that we should be keeping the pressure up to help turn better policy ideas into better law. |
