New York

There is likely to be a tax increase next year

Governor Andrew Cuomo said Wednesday that New York may need to raise taxes again next year to close the yawning budget gap created by the COVID-19 pandemic, even with Washington’s help.

“If Washington doesn’t provide enough money, I think there will be a tax increase,” Kuomo said at a news conference.

Later in the press conference, he said, “I believe there will be a tax increase and I believe we need to make many tough decisions. We believe there will be many (spending) cuts.

The state is seeking $ 15 billion from the federal government to cover the tax revenues that have evaporated this year due to the pandemic. Local governments are also facing serious budget shortages.

Cuomo previously sketched the state’s budget without federal aid to increase taxes, reduce spending, and borrow large amounts of money on the very wealthy. Temporary dismissals of civil servants are also likely to be at the table.

Assistance from Washington stopped the worst scenario, and tax increases for the wealthiest New Yorkers couldn’t completely close the budget gap without Congressional support.

“But what’s the problem?” Cuomo said of the tax increase. “Who needs how much and how much?”

Increasing tax rates on millionaires and millionaire New Yorkers is the most likely option. Some fiscal oversight agencies in recent weeks have also pointed out that they will delay the recurring middle-income tax cuts in the next year.

Parliamentarians are considering a $ 908 billion bailout package to increase unemployment benefits and help companies affected by the pandemic. We do not plan to include states or municipalities.

President-elect Joe Biden has expressed support for state aid, but the package is unlikely to be announced until sometime early next year. The New York budget is expected to pass by March 31st.

“I don’t want to give up Washington, but assuming I give up Washington and there is no assistance from Washington, the balanced budget will be detrimental to all families in the state,” Cuomo said.

There is likely to be a tax increase next year

Source link There is likely to be a tax increase next year

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