New York state’s top budget official responded to Thursday’s hike in New Jersey’s “millionaire’s tax” — by saying that most of the Empire State’s highest earners are already taxed even more heavily.
That’s because New York City takes its own big bite out of residents’ incomes, state Budget Director Robert Mujica said.
Mujica noted that New Jersey’s budget deal extends its top marginal income tax rate of 10.75 percent to cover people earning between $1 million and $5 million a year.
He also referred to pending legislation that would raise New York state’s top rate — now 8.82 percent — to 11.82 percent for people making more than $100 million a year and also establish new, higher rates for top earners who aren’t quite that wealthy.
“The overwhelming majority of billionaires and millionaires in this state live or work in New York City,” Mujica said.
“The combined state and city income tax rate is already 12.6 percent — which is higher than New Jersey’s new top rate or a proposed 12 percent ‘billionaire/millionaire tax rate.’ ”
New York City imposes a top tax rate of 3.876 percent on income over $50,000 for single people and $90,000 for couples, plus an additional $1,813 or $3,264, respectively.
Last week, Gov. Andrew Cuomo threatened to increase state taxes if federal lawmakers don’t help New York out of the fiscal hole created by the coronavirus crisis, which he’s estimated at $30 billion over the next two years.
But Cuomo — who’s since raised that number to $50 billion for both state and local governments — walked back his warning on Tuesday.
“People say, ‘Oh well, raise taxes, raise taxes,’” he said.
“I raise taxes, it puts the state at a competitive disadvantage because people can go to other states and taxes are very high in this state to begin with.”
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