New York Gov. Andrew Cuomo unveiled a $152 billion budget proposal that would extend a set-to-expire "millionaire's tax" to preserve $4 billion in state revenue over the next two years.
Cuomo said in remarks streamed from his Albany home late Tuesday that he wants to extend the tax for another three years to help plug a $3.5 billion deficit. The governor, a Democrat, said the move would allow the state to implement middle class tax cuts with those earning between $40,000 to $150,000 seeing a drop from 6.8% to 6.4% and 6.8% to 6.6% for income brackets of $150,000 to $300,000.
"We don't have the resources to lose the millionaires' revenue now and have this state function the way it should," said Cuomo, who pointed out that about 45,000 residents are impacted by the tax. "Four billion is a devastating amount of revenue to lose for the state."
The tax, which was first implemented by then Gov. David Patterson in 2009, has a top tax rate of 8.97% for individuals earning at least $1 million and couples earning $2 million or more. If the tax is allowed to expire, rates for the $1 million-and-up bracket would drop down to 6.85% at the end of the 2017 fiscal year.
Cuomo's 2018 fiscal plan budgets $163 million to offer free public college tuition for in-state-residents whose families earn $125,000 or less. Cuomo also pitched continuing a $20 billion investment for 100,000 affordable housing units and 6,000 units of supportive housing. He also wants to invest $2 billion over the next five years for
The state legislature and governor have until April 1 to iron out a budget agreement. New York is rated Aa1 by Moody's Investors Service and AA-plus by S&P Global Ratings, Fitch Ratings and Kroll Bond Rating Agency.
