“Our state government has come together in a bipartisan manner to create jobs, grow our economy and, at the same time enact a fair tax plan that cuts taxes for the middle class,” Mr. Cuomo said. “This job-creating economic plan defies the political gridlock that has paralyzed Washington and shows that we can make government work for the people of this State once again.”
The plan is centered around what Mr. Cuomo is calling his “New York Works Agenda” and he is billing to be as much a jobs program and a tax cut as it is a tax hike on the wealthiest New Yorkers. During the 2010 campaign, Mr. Cuomo pledged to not raise taxes and to let a temporary surcharge on the wealthy to expire.
Instead, the agreement reached with Senate Majority Leader Dean Skelos and Assembly Speaker Sheldon Silver will include a tax cut for 4.4 million New Yorkers. Those who make over $2 million a year however will see their taxes rise from 8.82% from 6%. Had the current temporary surcharge been extended, those making over $ 2 million would have paid closer to 9% in taxes.
The deal also includes a reduction in taxes for manufacturers and a reduction of the MTA payroll tax.
“This comprehensive plan will reduce the tax rate for middle class families to their lowest levels in more than fifty years, create thousands of new private sector jobs, and begin to turn our economy around,” said Mr. Skelos. ”I am pleased that this proposed agreement realizes long-held Senate Republican priorities like cutting the corporate franchise tax for manufacturers, reducing the job-killing MTA payroll tax for small businesses, eliminating New York’s stealth tax by indexing tax brackets and deductions, and building our reserves, along with providing additional flood relief to support job growth in devastated communities.”
The deal also includes the creation of the state’s first infrastructure fund to leverage money in capital investment through the creation of a public/private infrastructure fund, which would raise funds from pension funds and private investments and directing money from the Port Authority.
The plan also features an inner-city youth employment program which has a tax credit for employers who hire unemployed youth and a $37 million jobs plan for inner city youth.
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