Late Tuesday’s evening, Governor Andrew Cuomo and lawmakers passed a $212 billion budget. The highlights of the budget include a tax hike for the wealthy and provisions to legalize online gambling that would add revenues to make up pandemic deficits.
The tax hikes are as follows:
- Single earners who make more than $1 million a year will see a hike from 8.82% to 9.65%
- Couples who earn more than $2 million a year will see a hike from 8.82% to 9.65%
- Earners who make more than $5 million will pay a rate of 10.3%
- Earners who make more than $25 million will pay a rate of 10.9%
- Businesses who make more than $5 million a year will see a hike from 6.5% to 7.25%
The New York Times reported that the increase in taxes will help balance the deficit and jump starts the economy. The budget has made the following provisions for New Yorkers, who do not come in the highest tax bracket. They have faced problems due to the pandemic unlike the rich who have remained rich or have seen huge increases in their fortunes.
Some of the budget highlights include:
- $2.3 billion in federal funds to help tenants with rent
- $1 billion in grants and tax credits for small businesses
- $2.1 billion for a one time check payment to illegal immigrants
- $250 million to the NYC Housing Authority to build affordable homes
- $100 million to convert vacant properties including hotels to homes
The budget will also offer some concessions in property taxes to homeowners who make less than $250,000 a year.
One new provision in New York’s budget is legalizing mobile sports betting. This could bring a windfall of almost $500 million per year.
The Governor and most of the Democratic lawmakers have hailed the budget and said that it will only tax the ultra-rich. The Republicans have criticized the budget and said that the wealthy will leave New York and head to states which offer lower taxes.