NY Gov. Cuomo proposes highest tax rates in US without $15B in federal aid
The temporary rate hike would hit Manhattan's richest residents
New York Gov. Andrew Cuomo said the Empire State could soon see the highest income tax rates in the U.S. if the federal government does not step in to provide adequate aid.
During a speech detailing the state’s annual budget, Cuomo requested at least $15 billion in federal funding – or the state will likely have to implement a number of undesirable measures, including tax increases.
Cuomo said the state has proposed temporarily increasing the top rate by two percentage points to 10.86 percent, from 8.82 percent. A wealthy resident in New York City would pay a top rate of 14.7 percent in combined taxes, the three-term Democratic governor said.
That proposal would raise just $1.5 billion.
Therefore, the state would also have to look at other measures like cutting funding for things like education, Medicaid, local governments and social services, as well as borrowing.
New York’s four-year budget outlook currently shows a $39 billion shortfall.
The fiscal year begins in April.
NEW JERSEY, NEW YORK LOSE THE MOST MOVERS TO OTHER STATES IN 2020, STUDY SHOWS
Cuomo had long held out against the prospect of raising taxes during the pandemic, characterizing it among a roster of “third level of hell” options in the fall.
The three-term Democratic governor has acknowledged that many of the rich have left Manhattan during the pandemic. A tax hike could mean some of these individuals will not return.
As previously reported by FOX Business, New York had the second-highest percentage of outbound moves (67%) out of all 50 U.S. states in 2020, according to data from United Van Lines.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Other New York state lawmakers and officials, however, have been less sympathetic.
New York City Mayor Bill de Blasio has said he doesn’t base policies on “the wealthy few.” He has voiced support for increasing rates on the rich.
Rep. Alexandria Ocasio-Cortez, D-N.Y., has also called on the state’s leadership to ask more of its richest residents.
CLICK HERE TO READ MORE ON FOX BUSINESS