ALBANY, N.Y. (NEWS10) — The $212 billion New York State budget that passed through the legislature Wednesday night includes tax increases on the wealthiest New Yorkers while continuing middle-class tax cuts.
The budget will not delay middle class tax cuts that began in 2016. For the 2021 tax year, New Yorkers who file jointly in the $43,000-$161,550 income bracket have a personal income tax rate of 5.97 percent. In the 2022 tax year, that would drop to 5.85 percent.
Likewise, for those who file jointly in the $161,550-$323,200 income bracket it’s at 6.33 percent. In 2022, it would drop to 6.25 percent.
But when it comes to higher earners, the rates increase. The budget raises the personal income tax rate for individual filers with income over about $1 million to 9.65 percent, those earning between $5 million and $25 million to 10.3 percent, and those who make over $25 million to 10.9 percent.
The state is also increasing the corporate franchise tax rate.
Republicans have argued that the state’s ‘tax and spend’ policies will result in more people leaving.
“We’ll be spending more in the next year than Texas and Florida combined,” NYS Assemblyman Chris Tague noted on the floor Wednesday.
Patrick Orecki with the Citizens Budget Commission says there’s another risk.
“Because your tax base relies more on a relatively small segment of the population, if the economy changes, if there’s a more typical recession, you could lose even a fair share of your tax revenues under status quo,” he said.
Meanwhile, progressives say they will continue to push for more revenue raisers like what’s called a pied-à-terre tax, or tax on people with second homes in the state, to address issues like homelessness.
“To any billionaires watching, we’re coming for more. There’s more to do,” State Senator Jabari Brisport said Wednesday.
Some Republicans have expressed disappointment that New York will continue to tax unemployment benefits as well.