March 14, 2021
Both houses of the Legislature released their one-house budget proposals on Saturday night. We are analyzing various provisions for updates.
Lawmakers are expected to pass resolutions supporting these measures on Monday. They will then enter the final stages of negotiations with the governor.
Taxes: While there’s obviously a lot to be worked out in the coming weeks, revenue will likely be at the forefront of negotiations. At least on the basic question of income tax rates, both budgets increase taxes on businesses.
For the looming fiscal year, Cuomo had proposed that the highest tax rate — imposed on income above about $2.2 million — would be 8.82 percent. The governor’s plan also included a surcharge for higher earners, starting at an additional 0.5 percent for those making more than $5 million and as high as 2.0 percent for those making over $100 million. The effective highest rate, in other words, would be 10.82 percent for those making more than $100 million.
The Senate goes further. That house’s proposal would have anybody making more than $2.2 million pay 9.85 percent. The highest rate would be 11.85 percent, imposed on income of more than $50 million.
The Assembly proposal keeps the 9.85 percent and $2.2 million figures. But the top rate kicks in sooner under that house’s bill: Anybody making $25 million or more would pay 11.85 percent.
The bills: Links to all of the one-house bills can be found here:
State Operations Assembly/ Senate
Debt Assembly/ Senate
Aid to Localities Assembly/ Senate
Capital Projects Assembly/ Senate
Public Protection and General Government Assembly/ Senate
Education, Labor and Family Assistance Assembly/ Senate
Health and Mental Hygiene Assembly/ Senate
Transportation, Economic Development and Environmental Conservation Assembly/ Senate
Revenue Assembly/ Senate