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Gov. Cuomo, Legislature Agree On Middle Class Tax Cuts For New Yorkers

ALBANY, N.Y. (CBSNewYork) — Huge tax cuts are on the way for millions of New Yorkers.

You might call this major legislative magic. Governor Andrew Cuomo and the legislative leaders have come up with a tax deal that somehow reduces taxes for everyone, but still raises nearly $2 billion in new revenue.

“Under this plan middle class families will pay the lowest tax rate since before I was born. It will be the lowest tax rate in 58 years,” Gov. Cuomo told CBS 2’s Marcia Kramer on Tuesday.

In an unusual address from Albany, Cuomo unveiled his new tax deal that includes tax cuts for everyone — 4.4 million middle class tax payers getting a break. But the more you make, the higher the rate you pay. Translation: the rich will pay more than everyone else.

“That’s what’s right and that’s what’s fair and that’s what New York deserves,” Cuomo said.

And even though everyone pays less, the state will still take in an extra $1.9 billion in revenue.

Here’s how it works:

* The old millionaires’ tax surcharge, which hit individuals making more than $200,000 a year and couples making more than $300,000 a year — with a rate of up to 8.97 percent, will be allowed to expire on Dec. 31.

* In its place a new tax code that taxes the rich — real millionaires — more than the rest of us.

* If you make over $2 million, your tax rate is just a tiny bit lower than the original surcharge — 0.15 percent.

* If you make $300,000 to $2 million, your tax drops to 6.85 percent.

Although the calculations are still being worked out, if you make $100,000 a year that could mean a savings of about $400.

“The additional revenue generated will make a significant difference to our state by helping to close the deficit. I think it’s fair. I think it will benefit all New Yorkers in the long run,” Cuomo said.

The agreement also calls for more casino gambling, if voters approve, and reducing the Metropolitan Transportation Authority payroll tax to help small businesses.

In the end, most New Yorkers will pay less, but the richest New Yorkers will pay a much higher rate, though a bit less than if the surcharge had stayed in place.

It’s the kind of bipartisan plan that’s winning fans, even among Republican lawmakers like Staten Island Assemblywoman Nicole Malliotakis.

“Everyone who earns less than $2 million will receive a tax cut under this plan; 99 percent of my district is going to get a tax cut,” Malliotakis told CBS 2’s Sean Hennessey.

Others said it’s about time.

“It seems like the past 10 years or so people making a lot of money have been getting more breaks,” said Hartsdale resident Paul Grower.

Hennessey found one Wall Street employee who thinks the plan could hurt the economy.

“I think it’s a bad idea to raise taxes on anybody. People who make more are generally the job creators,” James Tang said.

How do you think the proposed deal will affect you?  Share your thoughts in the comments section…

  • PaPa Joe

    How ’bout a breathing tax? Put a meter on everyone’s chest, the meter cost charged to the breather, and count every breath a person takes. At about a half to a full penny per breath there shoud be enough revenue to increase the amount of tax payers money wasted and to pay for the perks our elected officials enjoy.

  • Louis Vega

    Let me get this straight!
    you give a tax break to the working classes, and raise taxes on the rich, right?
    haven’t they tried that little trick before?
    All the rich have to do is, lay off more people, and raise the price of what-ever it is they’re selling to their costumers,(we the people) to make up the diference for the higher taxes that the govt is going to be charging them, leave the state or the country, and take their, “J-O-Bs”- with them..
    What a clever idea!
    Don’t forget what Margaret thatcher once said, ” the socilaist will eventually run out of other peoples money..”

  • JK

    Is there still a middle class in NY?

  • Huh

    Whats up with that goofy face Gov Cuomo has in that pic???

  • Blasterific

    Tax cut my ass!!! Raise the tolls, gas tax, ball tax ass tax this tax that tax my mothers tax.

    • ttrue nyc

      Dont forget the bagel tax and the air tax wait and the you live in nyc tax and the tax for talking. tax for being a human and we are saving the planet tax . 3 billion more to go.

      • midi-man

        The bagle tax was the Mayor Bloomberg or Doomberg. taxinig everyone out of this city not Cuomo.

  • Jerry

    Again another diversionary tactic overlooking the real issue of over taxation due unconscionable educator salaries and perks.

  • Nick

    Millionaires don’t have ordinary income. They have capital gains. The only folks reporting a million dollar ordinary income are the small business owners. You know, the ones that will be FIRING their workers as they have to pay Cuomo’s pocket instead of the workers. You idiots deserve Cuomo.

  • Mike

    Is that tax ‘cut’ going to make up for the 10% real estate increase that we were just socked with in NYC?

    • midi-man

      We need to go after Bloomberg. He has a 3 bill surplus and still increased the property tax. He is and A$%

  • Dan Mulholland

    So all this means is the wealthy will change their “income” to capitol gains and pay a lower rate. Like other states that did this, the “wealthy” will do their best to move out of NY. Our taxes are too high in NY no wonder we loose members of Congress n the census. Get rid of “Public” unions and see the savings.

    • bob

      get rid of the pillaging CEO’s is more like it!

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