I know it has been awhile since my last post, it seemed unacceptable to let this one pass me by. Today, Governor Andrew Cuomo announced that the Assembly and Senate will be returning to Albany prior to their first day of session in order to address the newly created Tax & Jobs agreement that was reached earlier in the week.
I waited to update you all on this until this moment for one particular reason, the Governor, the Speaker, and the Majority Leader and can all agree on one thing. However, until they actually call an extraordinary session, it is all lip service. Session has been called for December 7th at noon.
The main, and most likely the only, topic of discussion (if discussion takes place) will be on the new Tax & Jobs arrangement made by Cuomo, Silver, and Skelos. In the agreement there will be a few, and by a few I mean many, changes to the tax code in order to stimulate 2 billion dollars worth of additional revenue for New York State. Under the plan the tax brackets will be as follows…Lower than 40K, 40K to 150K, 151K to 300K, 301K to 2 Million, 2.1 Million or more.
If this new code is passed before January 1st, everyone in all brackets will be receiving a tax cut. However, after January 1st 2012 the top bracket will see a tax increase. This is leveraged by the fact that the middle class will see the lowest state tax since 1953. Not too shabby if I say so myself.
In return for lowering taxes for everyone (except the very wealthy) Senate Republicans requested that the MTA Payroll tax be reduced. Under the plan, if you are a company or non-profit organization in the MTA service area you will have to pay a tax if your pay-roll is over 1.25 million a year. If your company’s or non-profit’s payroll is between 1.25 and 1.5 million you must pay .11 percent. If it is between 1.5 and 1.75 than you must pay .23 percent in taxes.
Now, the other side of this agreement is Jobs. In order to stimulate job growth Cuomo, Silver, and Skelos have agreed to create the “New York Works” initiative. This will focus on infrastructure development projects like fixing bridges and roads.
In conclusion, the plan lowers taxes for 98% of New Yorker’s, it creates the “New York Works” initiative to begin redeveloping New York’s infrastructure, and cuts MTA taxes for organizations. As a result, New York will net 2 billion dollars toward closing its significant budget gap (which is around 2 billion dollars) all in time for the holidays!
