The measure, passed unanimously in the state Senate and the Assembly, renews a part of the state’s millionaire’s tax, to which Governor Cuomo was earlier opposed to.
The millionaire’s tax is nothing more than a surcharge levied on those with income above US$2 million.
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Mid-term, the governor was forced to change his stance after a report showed a budget deficit of US$350 million and a US$3.5 billion gap in the fiscal year beginning April 1.
Supporting the wealth tax, Cuomo told the media: "This is a different economic reality than anyone could have anticipated. For this new reality that we’re facing, this is the best decision."
It is expected that the new plan will raise US$2.6 billion in additional revenue for the city each year. About a quarter of that (some US$400 million) will pay for a small tax cut for those who earn below US$300,000 and the rest, US$1.5 billion, will help close next year’s deficit (estimated at US$3.5 billion).
As such, the measure has been lauded by some as a necessary step to balance the city’s budgets and by others as a thinly veiled direct wealth transfer from the rich to those who are not-so-rich.
