Andrew Cuomo And State Leaders Agree On Tax Plan To Raise Taxes On The Wealthy

Governor Cuomo and state legislative leaders announced their agreement over a tax overhaul plan that would increase taxes on wealthy New Yorkers and produce $1.9 billion in annual revenue.

Under the new deal announced on Tuesday, middle-class residents making between $40,000 to $300,000 would receive income tax cuts that would result in savings ranging from $300 to $400 a year.

The timing of the announcement came just two short weeks before a state tax surcharge on the wealthy was set to expire.

Cuomo stated the need for a change in order to bolster the worsening economy and pointed to the current $3.5 billion state deficit. During Tuesday's press conference, the governor explained the new Fair Tax Plan:

[The new plan]...a tax reform to make the code more equitable and to stimulate the economy. I propose a tax cut aimed at the middle class New Yorkers that I believe will help stimulate the economy by putting much needed money back in the hands of millions of people across this state...Under this plan, middle class families will pay the lowest tax rate since before I was born and that was a long, long time ago. It will be the lowest tax rate in 58 years.

Assembly speaker and Manhattan Democrat Sheldon Silver praised the leaders and their steps to "restore fairness and equity to our tax system."

The New York Times notes that in addition to the tax cuts, the agreement includes $50 million to aid areas damaged by Hurricane Irene, funds to build stronger road infrastructure, and programs to stimulate jobs for the poor.

The city's state council also endorsed the plan, with Councilman Jumaane Williams expressing his support by stating the change would provide "New Yorkers a fighting chance in this economy."

Comments

[mike711l]

09:58 AM on 12/08/2011

Oops, I meant: Cuomo / Gillibrand 2016!

[mike711l]

09:58 AM on 12/08/2011

Cuomo / Gillibrand 2012!

[mike711l]

09:54 AM on 12/08/2011

I understand that President Obama called Governor Cuomo to ask him how he was able to deal so effectively with the Republicans in the state legislature.

[mike711l]

09:41 AM on 12/08/2011

Is there nothing that Governor Cuomo can't accomplish? He must be one of the most effective governors ANY state has ever had. My only worry is that he will accomplish everything he wants to in his first year and have nothing else to do.

If he doesn't want to run for President in 2016 he should be drafted into the office!

[FancyAmerican]

06:28 PM on 12/07/2011

Finally.

[RespectMyAuthoritah]

02:46 PM on 12/07/2011

Thank you Governor. Thank you OWS.

Cuomo, you're a hero!

[mike711l]

09:49 AM on 12/08/2011

They certainly respect his authoritah!

[janfin]

02:31 PM on 12/07/2011

Now THAT'S the Andrew Cuomo I voted for!

[danglines]

02:25 PM on 12/07/2011

Why should the rich pay a lesser percentage of tax than everyone else, including me! They take greater advantage of this country than I do, and just don't wan't to pay their fair share. That's greed! Not citizenship!

[jman7]

01:02 PM on 12/07/2011

many of the small business owners who earn over 300,000 you claim make too much pay their workers before they pay their families. Business is not good their employees get paid and the owner does not. People think little of the true hardships of the upper middle class in southern NY

[mike711l]

09:42 AM on 12/08/2011

There's a difference between what a business earns and what a person earns.

[jman7]

09:51 PM on 12/09/2011

no there is not! you obviously do not run a business around here. What i said is the truth

[jman7]

01:00 PM on 12/07/2011

while i understand this common distate that everyone has for anyone with money for no particular reaosn other than the rich have money and they do not lumping them all together as these evil ppl while give nothing to society, this is not an achievement. Cuomo promised not to increase taxes on anyone. In NYS after paying nearly 40 percent of their income in federal taxes, the millionaires tax and high property taxes and the ones who pay for the MTA tax, now are told you do not pay your fair share? that is quite obnoxious.

what gives you the right to stick your hand into a man's pocket and say he has earned too much and i have too little you must give all of us some of your money because you earn more you should be taxed much heavier. Even though you pay nearly half your salary in income tax to the fed when nearly half the country does not. you pay taxes on your small business which others do not have. Your state should tax you more when most states do not.

like all business owners when the millionaire's tax began one to two workers were laid off to compensate for the loss in income and more duties and stress were left on the remaining but keep taxing its a success!

[mike711l]

09:43 AM on 12/08/2011

Why don't you just call them "Job Creators" and show everyone what party you belong to!

[jman7]

09:54 PM on 12/09/2011

harassing my comments proves nothing btw. I do not believe everyone is a job creator as you refer them to. I am a Democrat. I voted for clinton and Al Gore, no i did not vote for Obama. So there you go my voting record.

I do believe in facts. You tax a businessman in NY more he will in fact lay off an employee to pay for the tax. I am not saying he will hire more people if you tax him less. But taxing him more will not make him hire more people. Simple truths

[batguano]

11:24 AM on 12/07/2011

This “compromise” is NOT a “tax increase” on millionaires, it only lowers the decrease if the “Millionaires Tax” were allowed to expire; the rich still get a tax cut & maintain ability to control elected reps & policy decisions via campaign-contributions. Ordinary New Yorkers have seen property taxes explode to unreasonable & unsustainable levels, & fees, that are tax increases, like motor vehicle fees, raised to outrageous levels. When I hear “millionaires will move out of the state” if their taxes are raised, I become infuriated – people by the thousands are already being forced out, not being able to afford property & other taxes & fees – for every dollar the rich evade, a dollar comes out of the pocket of those least able to afford it!

Prior to 1972 NY had 14 tax brackets ranging from 2% to 15%, they were consolidated, eliminating the bottom two brackets forcing the poorest to pay more, & eliminating the top 9 brackets benefiting the richest, leaving us with basically a single tax rate of 6.85% if a person made $40 thousand or $40 million; that is what we have today, & what is incredibly lauded as a “great achievement” - BS.

The “millionaire’s tax” was a feeble attempt to RESTORE some measure of tax equity in NYS; this compromise does little/nothing to accomplish that.

Please read “The Path Not Taken”; it will perhaps open your eyes why our property taxes & “fees” increased so dramatically further burdening those least able to

[batguano]

11:38 AM on 12/07/2011

Apologies, the ending of my comment was dropped; it should read:

Please read

“The Path Not Taken: How New York State Increased Tax Burden on the Middle Class and Cut Taxes for its Highest Income Taxpayers by over $8 Billion a Year”;

it will perhaps open your eyes why our property taxes & “fees” increased so dramatically further burdening those least able to afford it, and why this compromise brings little to really celebrate! We must continue the fight for real tax equity!

http://www.fiscalpolicy.org/taxhistory2.htm

OWS!

[Crimmies810]

10:52 AM on 12/07/2011

And what is to stop the wealthy New Yorkers from packing up and moving elsewhere like so many have already?

[hemorrhage]

02:40 PM on 12/07/2011

if a miniscule increase in their taxes (which is actually a decrease from this year) causes them to leave I say good riddence... these are not patriots

[Mark Ruffalo]

10:29 AM on 12/07/2011

Governor Cuomo did what the rest of the country should be doing. Thank You Governor Cuomo for your sober and responsible choice of tax equality. Thanks for standing up for the 99% of the population that drives this state and makes it and every state great. Thank you OWS for bringing these injustices to light! There is no doubt that the Governor would not have made this wise decision if you didn't sacrifice your comfort, and physical well being for the greater good. You are owed a great deal of respect and admiration for what you have accomplished and endured.

[batguano]

11:22 AM on 12/07/2011

The Governors compromise does not deserve this adoration Mark. Millionaires still get a tax-cut and still will not be giving-back their fair-share.

[mike711l]

09:46 AM on 12/08/2011

He accomplished 1,000 times what the federal government has been able to! I think he deserves a few kudos for that, don't you?

[kimbanyc]

08:23 AM on 12/07/2011

About Time Governor

[faxnreason]

10:45 PM on 12/06/2011

Victory!

All the hours marching where not in vain.

We got a Governor to protect working families, not the rich.

Feels good!!!!!!!

And we are just getting started. The wind is at our backs.

No time to celebrate. There is still much to be done.

[kimbanyc]

08:22 AM on 12/07/2011

fanned from nyc

[hemorrhage]

02:43 PM on 12/07/2011

Read carefully... its actually a decrease in taxes for the rich. Millionaire's temporary surtax sunsets and this new rate is implemented, resulting in a lower tax bill