New York Gov. Andrew M. Cuomo has announced a proposed agreement with the state Senate and Assembly on legislative and executive proposals aimed at creating jobs, reorganizing tax brackets and making other changes affecting corporate and personal income taxpayers.
The agreement includes support for a comprehensive New York Works Agenda that proposes to create thousands of jobs through new investments in New York’s infrastructure.
The New York Works Agenda is based on the idea of creating jobs by rebuilding New York’s infrastructure. Governor Cuomo and the legislative leaders have agreed to a plan that would create New York’s first infrastructure fund to inject over $1 billion in job-creating investment. The accelerated state funding would leverage $10 billion in direct capital investment to create thousands of direct jobs by rebuilding roads and bridges; parks, dams and flood control projects; upgrading water systems and educational facilities; and investing in energy-efficient improvements to commercial and residential buildings.
The agreement would also reorganize the individual income tax brackets. Under the proposed plan, taxpayers earning $40,000 to $150,000 would be taxed at 6.45% (previously, 6.85%); taxpayers earning $150,000 to $300,000 would be taxed at 6.65% (previously, 6.85%); taxpayers earning $300,000 to $2 million would be taxed at 6.85% (previously, 7.85% to 8.97%); and taxpayers earning over $2 million would be taxed at 8.82% (previously, 8.97%).
Through an executive order, the governor has created the New York State Tax Reform and Fairness Commission to address long-term changes to the tax system and to create economic growth. The commission will have 13 members, including four recommended by the Senate and Assembly majority leaders and two recommended by the Senate and Assembly minority leaders.
Cuomo and the legislative leaders also announced additional flood relief, including a $50 million grant program for businesses and counties impacted by Hurricane Irene and Tropical Storm Lee. Additionally, the plan includes a job retention tax credit for businesses impacted by a natural disaster during the last year. Finally, the governor and legislative leaders announced that the MTA payroll tax would be reduced for small businesses.
The legislative leaders must still present the agreement to their members for approval.
The release is available on the governor’s website at http://www.governor.ny.gov/press/1262011GrowTheEconomy.
Release, New York Gov. Andrew M. Cuomo, December 6, 2011