Is New York lastly able to tax the wealthy?

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Is New York finally ready to tax the rich?

Unmasked myths revive. The idea that the rich will move to Key Biscayne if not appeased has caught on despite the evidence. As Cornell sociologist Cristobal Young found when analyzing the tax returns of 3.7 million very high earners filed over 12 years, they largely stay where they are. Only 2.4 percent of those in his dataset left the state in any given year. Low wage earners, who generally looked for opportunities, were far more likely to emigrate.

While editors, architects, and other creative types may still be housed in cottages in Maine or Vermont, most major investment houses and real estate firms have been coming into the office for months – a percentage of dealers will be back on the ground for a while. This should counter the impression that anyone can work from anywhere – that a prolonged mass exodus from the city is inevitable.

Of all the different laws, the one that seems to have the most support would gradually increase income tax rates, starting with individuals earning more than $ 300,000 (or couples earning more than $ 450,000). Currently, the highest marginal tax rate in the state is 8.82 percent. For example, under the Invest in New York Act, that number would rise to just over 10 percent for those who make $ 2 million a year. For a maximum of $ 100 million or more, the rate would extend to 15 percent.

Last month, Governor Cuomo himself launched the idea of ​​a phased increase in income tax that would make those in the top bracket pay 10.82 percent. Whether he actually stays true to this idea, however, depends on how much relief the federal government ultimately diverts to New York State. The governor has asked for $ 15 billion. His budget manager has argued that there would be no need for tax hikes that lawmakers are seeking, which means that now that you’ve received mittens, the hole in the roof no longer needs to be mended.

Regardless of the outcome, the tax issue will likely be decided during the budget negotiations, which take place in New York from now through March. This annual give and take cycle comes this year as the governor faces multiple scandals. It is of course possible that he will submit to some popular demands to divert attention from these scandals.

Proponents who fought for tax reform hope to do more than fill the economic gaps left by a public health crisis. They want to make up for decades of divestments in struggling communities, years of mollycoddling a population married to high-priced “watercraft”.

“Joe Biden is going to help state and local governments, and that’s great, but the money will go away in a year,” said Mike Kink, executive director of Strong Economy for All, a coalition of trade unions and nonprofits that make up the government have directed fee for a fairer tax system.

“We have made great strides on cultural issues, for example in relation to transgender rights. But when it comes to money and resources, this is where you can make really lasting changes, ”he said,“ and this is where the rich and powerful are waging the greatest and strongest struggle. “