NY Gov. Cuomo Proposes Raising Top Income Tax Rate To Highest In The Nation

New York City already suffers from the biggest big city exodus in the US, with recent data from the USPS showing that 300,000 New Yorkers have bailed from the Big Apple in the March-November 2020 period. And if NY governor Andrew Cuomo gets his way, the exodus is about to get far worse.

According to Newsday reporter Yancey Roy, Gov. Cuomo is proposing to raise the top tax rate – on those with annual income over $5 million – from 8.82% to 10.82%, unless the Federal Government comes through with $15 billion in aid to NYC.

NEW: Cuomo’s budget would increase tax rate on annual income over $5 million from 8.82% to 10.82% — unless the feds come through with $15 billion in aid to NY. If feds come thru, no hike. #nybudget

— Yancey Roy (@YanceyRoy) January 19, 2021

If the Cuomo tax passes, taxpayers in the highest income bracket would pay a combined city and state rate of 14.7%, the highest in the nation. However, this is merely a (reverse hostage) negotiation by the governor, who said that the proposal will be reversed if a federal government approves relief payments as proposed by the Biden administration. And if the state gets $15 billion in aid from the Federal government, the tax increase would be withdrawn.

In short, @NYGovCuomo says he’ll back a tax hike on the rich IF, IF, IF D.C. doesn’t come through with an additional $9B in aid to NY. Many Dems in state Legis want to raise the rates now, not wait on Washington. A potential lightning rod for #nybudget https://t.co/fj3mlkA1ux

— Yancey Roy (@YanceyRoy) January 19, 2021

Said otherwise, either all US taxpayers will chip in to bail out on of the most fiscally irresponsible states in the union… or the ultra wealthy will. Something tells us that this particular proposal won’t pass (you see, the rich have powerful friends in Washington), because if it does, Escape from New York will no longer be in the “fiction” section.