New York lawmakers stole the spotlight this week as they were able to agree on — and convince reluctant Gov. Andrew Cuomo to support — strong progressive tax increases on the highest-income households and corporations in the state to fund shared priorities like K-12 education and pandemic recovery efforts. Several other States including Minnesota are proposing tax increases also.
At the end of the day, NEW YORK STATE legislators and Gov. Andrew Cuomo reached a final budget deal this week, which includes temporary highly progressive income tax increases on about 50,000 of the state’s richest households.
Income between $1.1 million ($2.2 million for married couples) and $5 million will be taxed at 9.65 percent (up from the current 8.82 percent), the next $20 million at 10.3 percent, and income over $25 million at 10.9 percent.
Business profits over $5 million will also see a 0.75-point increase, and mobile sports betting will be allowed and taxed.
The budget prioritizes investments in K-12 education and relief for residents and small businesses.