TaxPersonal TaxNew York millionaires face tax hike

New York millionaires face tax hike

New York's millionaires could be in for a tax rise set to earn the state $1.5bn in it's first year.

The democratic lawmakers of New York State Assembly are considering raising
income tax for citizens earning $1m or more by 1%.

It is estimated that if the plans ahead the state would make $1.5bn in its
first year,
WebCPA
reported.

The idea has come about as the State tries to balance its budget and fund
transportation costs.

Currently the estimates 26,000 New York’s millionaires pay a tax rate of
6.85% but with the changes raising it to 7.7%.

State governor Eliot Spitzer and state senate majority leader Joseph Bruno
have so far dismissed the proposals but it has received backing of assembly
speaker Sheldon Silver.

It is speculated that the money will be used to fund transportation,
including the possibility of building a new subway line in New York City.

It is thought that the extra cash will reduce pressure on the Assembly to
introduce a congestion charging zone similar to one in London.

Further Reading

New York May Levy
Millionaire Tax

Earn
$1 Million a Year? Assembly Democrats Will Seek a Tax Rise Just for You

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