State Budget

The top priority in the State budget this year is the renewal of the multimillionaires’ tax.

Failure to renew the tax, which expires Dec.31 of this year, will result in a $3.3 billion revenue loss to the State in 2018. That revenue loss concern is compounded by another tax cut enacted last year, the second  middle class income tax cut ” enacted during the Cuomo years. Advanced by the Republican Senate during the 2016 budget, Cuomo and the Assembly agreed to the proposal with a long phase-in until 2024. While its impact is negligible now, next year, in 2018, the ” middle-class income tax cut ” results in a $1.1 billion revenue loss to the State. The Republican Senate’s resistance to renewing the multimillionaire’s tax this year will have significant consequences: if you added the two reductions together for next year, the revenue losses grow to $4.4 billion and start forcing reductions in spending on school aid, health care, and transportation.  Revenue losses from the middle-class tax cut grow to $4 billion a year by 2024.

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