Andrew Cuomo plans to hit New York’s top earners with highest taxes in country to cover Covid pandemic shortfall

ANDREW Cuomo’s plans to hit New York’s top earners with a tax increase, making them pay the highest in the country, in a bid to cover the shortfall caused by the pandemic.

The New York Governor and state lawmakers are set to finalise a budget plan that will increase corporate and income taxes by $4.3 billion a year.

AFP

Cuomo plans to hit New York’s top earners with a massive tax increase[/caption]

According to Wall Street Journal, under the so-called “millionaire’s tax” income taxes would rise to 9.65 per cent from 8.82 per cent for those making more than $1million or married couples who make more than $2 million.

Those with an income over $5million would be taxed at 10.3 per cent while anyone earning more than 25$million would be taxed at 10.9 per cent

Combined with the city’s top income tax which is 3.88 per cent, it would mean, New York’s millionaires would have to pay a state and city tax of between 13.5 and 14.8 per cent.

Currently, California is the state with the top tax rates in the country of 13.5 per cent on income over $1 million.

In addition, corporate tax rates would increase from 6.5 per cent to 7.25 per cent.

According to the Journal, the extra tax revenue will be used to increase school aid, help small businesses and people who are behind on their rent as well providing funds for undocumented immigrants.

After spending days finalising the details of the spending plan, Cuomo and legislators broke on Easter Sunday and are expected to resume in Albany today.

Last month, President Joe Biden’s $1.9 trillion COVID relief bill passed, according to which, New York state received $12.5 billion and New York City $6.1 billion. 

The relief bill also included the $1400 stimulus checks for struggling Americans during the Covid-19 pandemic.

Despite the mounting pressure for Gov.Cuomo to resign due to the sexual harassment allegations, he has refused.

It comes after the state Assembly opened an investigation into the allegations against the 63-year-old Democrat and his handling of nursing home deaths.

It has also been revealed that the New York governor was trying to secure a $4 million book deal while his aides were trying to hide Covid-19 related deaths in nursing homes, the New York Times reported.

AP

Biden’s 1.9 trillion bill passed last month[/caption]

According to the people close to the book bidding process, Cuomo was expecting to receive a book deal of at least $4 million.

Cuomo had claimed for months, he hid the actual number of nursing home deaths from the public to avoid blowback from the federal government.

Last week Cuomo signed a bill to legalize weed in New York after lawmakers reached a marijuana deal.