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Posted by Majority Press (State Senate): The New York State Senate today passed the Middle Class Tax Cut and Job Creation Plan that will reduce taxes for millions of hardworking, middle-class taxpayers to their lowest levels in more than half a century. In addition, the comprehensive plan will help strengthen our economy and create new jobs by eliminating the job-killing MTA payroll tax for more than 78 percent of the small employers that pay the tax. The plan will provide a total of more than $3.3 billion in tax relief to individuals and businesses.
A special session is underway in Albany to consider a major overhaul of State income tax rates. Lawmakers are expected to pass a bill tonight that would mean lower taxes for 4.4 million middle class New Yorkers beginning next year.
Under the deal, middle class residents will see their tax rate drop from 6.85% to 6.45%, a savings of $300 to $400 a year. Those making $2 million or more will see their current tax rate drop from 8.97% to 8.82%, but it's still higher than the 6.85% they would have paid when a three-year surcharge expired December 31st.
Assembly Speaker Sheldon Silver said today the plan was a product of compromise between Democrats and Republicans. Mayor Bloomberg said he wasn't going to second-guess the new tax code plan because Governor Cuomo "inherited a budget mess." What do you say?
Would you vote "yes" or "no" on the plan to change the tax structure? What aspects do you find fair or unfair? Does the unified front coming from Albany renew some of your confidence in State lawmakers?
Send your thoughts using the link above.
Andrew Cuomo's tax plan won't succeed in raising revenue because it doesn't address or close the enormous number of loopholes in the tax code, which allows people with the ways and means (i.e., smart tax attorneys and accountants) to avoid paying one penny in additional taxes, or any tax at all. Eliminating the loopholes, the hiding places, and the complexity of the tax code is the real key to increase tax revenues that would ultimately benefit all New Yorkers.
PETE FROM MANHATTAN
Cuomo's tax code explorations need further assessment and transparent translation. How will the tax calculate into an enhanced tax burden or relief on the folks paying taxes? Revenue is needed for infrastructure and schools, will the new taxes be used to sustain and improve those areas? Will homelessness and the debilitated HRA system be helped or plundered?
Since all taxation is theft (our money is taken from us by force, without our consent), my vote would not be Yes or No, but Not Enough.
Talk to me about 30% reductions for 4 years and you might get my attention. Plus, we would be on the way to having a government limited to its constitutional powers, not the fascist regime we now have on local, state and federal levels.
Port Richmond, SI
I belief this is a good compromise and shows what can be accomplished when the two parties come together for the good of all.
This change to the tax code is decades overdue -- how could the state ever justify the fact that people who make $41,000 a year (hardly upper class in New York City or too many other places in the state) pay the same percentage of their income in taxes as someone making $1 million or $2 million (or $1 billion) a year?
I applaud Governor Cuomo, Speaker Silver, and Majority Leader Skelos for taking this important step to rectify this absurd situation.
Upper West Side
First of all we keep seeing the same faces in Albany like Shelly Silver. We have Bloomberg saying that Cuomo inherited a budget mess. Both of these two people have all the money they care to spend at their fingertips whenever they choose to and no one can even question what happens to all of our tax money that this City and State get from us. Do they really think that those few hundred dollars are suppose to make us happy. What planet are they living on. The rents, cable, phone, computers, electric and food prices have gone through the roof and no one does anything about it. I thought we already pay for the repairs of highways and bridges. So where is all of that money.
WHAT A BUNCH OF PHONIES AND TO CONTINUE TO KEEP TOOTING THEIR HORNS THINKING THAT THEY HAVE DONE THIS IN OUR INTEREST, WELL THEY ARE VERY MUCH MISTAKEN. I NOTICE THAT AFTER ONE YEAR A SO CALLED SPECIAL PANEL HAD HEARING ON LAST YEARS SNOW STORM. HOW QUICKLY EVERYONE PASSED THE BUCK AND BLAMED US OUTER BOROUGH RESIDENTS FOR BLOCKING STREETS AND WHAT HAPPENED TO THE PEOPLE THAT DIED? AM I MISSING SOMETHING.
The 1% should pay 9-10% and they still have it made in the shade. Progressive income tax is defined as the more you make the more you pay. Only pin-headed reaganites and tea party cretins think differently on the rare occasions they exercise that portion of their anatomy. That said I normally advocate compromise except on the battlefield and in this instance it seems the fix is in. Berney Madoff would be proud.
The state definitely needs more revenue. Over 15,000 seniors have sent letters to Governor Cuomo asking him not to try to cut funds that would close 105 senior centers again. This is the essence of what "higher taxes" for those who could afford it means to the lives of New Yorkers - not depriving 10,000 seniors of their senior center.
Don't quite understand how lowering the tax for the rich will help the state, but ok. I'm sure we'll pay for this somehow in the near future.
-Ari, West Chelsea
This is purely a political ploy so that Cuomo can claim he ‘lowered rates’ even for the middle class.
The supposed decrease in rates is a joke, the lower rate will only apply to that part of your income over $40,000, and is only a decrease of .4 percent! (from 6.85 to 6.45 percent) so for anyone in the middle class, you’re going to see very little change, if any at all.
As usual, the real benefit will only be to people making much more than that.
It hadn’t been for the rich – we all wouldn’t be in this mess. Greed is what put us in financial ruin. What is Albany doing for the middle class except to run us all out of the city?
The deal stinks and they should all be ashamed of themselves for putting it on the table. What about when transit rates go up? Doesn’t that negate any tax break we are supposed to get?
Sheldon Silver should be put out to pasture once and for all.
Our economy needs a middle class to thrive, and it has been getting dangerously close to low income.
I welcome this proposal. It will help the middle class recover and give a much needed boost to local economies, allowing professionals to once again become homeowners and re-enter the spending arenas that are dying without a prospering middle class. People who make around a million dollars were never deprived of these markets, which never relied on low-income families to survive.
tj ft greene
The tax bill is a silly joke. They are broke and they are lowering taxes on most people. that will not create jobs. The answer to the jobs problem is to put the country back to work making things. The way to do that is tariffs to make it pointless to manufacture overseas. Tax reductions do not make jobs.
Bruce, Bruce's Field Camera Store
The Devil is in the details!
Vee from Harlem
So we have four hundred bucks more. So what? Every year the state gives the go ahead for insurance companies to raise their premiums and the PSC to raise our rates. One hand doesn't know what the other hand is doing. This is a joke.
Great. I'll be getting another $400 per year. With Cuomo continuing to underfund the MTA, I am sure the price of a ride will be going up and half my money will go there.
It's good that those with extreme incomes will be paying more, but Cuomo is slowly destroying our mass transit system. Eventually it will equal not much more in the pocket of the average New Yorker.
Jackson Heights, NY
It seems like the state legislature actually did something worthwhile with this new tax bill. It gets the wealthiest New Yorkers to pay a fairer share of the state's expenses, and it gives a break to the 99% who are not as well-off. If the federal government and the rest of the states followed our example, maybe we can finally put all our civil institutions back on the road to recovery.
Lower East Side
John, Talk about SPIN! The most that the highest earners in the middle class,( those making up to $300,000)..and most in need of relief, is a whoppng $600. Whereas, those making between $300,000 and 2 million are reduced by twice as much,(1%) the highest earners will save $20,000,but those making $10 million will still pay $15,000 LESS under the new rates!!! Yes, the highest earners have the smallest reduction, percentage-wise, but will get $14,400 more in savings than those making 5% of what they make...It's more than if current rates expire, but how is this providing more equitable tax burden? And how does a promise not to RAISE taxes mean the Gov. needs to lower them?? ...and lower them most for the wealthiest???
Samantha from Eastside
It's a good thing that the wealthy will share the taxes. But $300.00 over 52 weeks if that means $300.00 divided into 52 separate savings that comes to about $5.80 per week. And at today's prices I can not imagine what I could add to my shopping cart.