Okay, so everyone gets all worked up when the subject of taxes gets brought up, so we'll try to be short and sweet about it.
Syracuse.com reported that the New York State Assembly announced a plan on Tuesday that would reduce the taxes of the middle class while simultaneously increasing the taxes of millionaires.
If you're fiscally conservative, well, you might really hate this.
The proposal would require anyone earning $1 million to $5 million a year to pay 8.82% taxes - the state's top tax rate.
This is a fairly substantial increase from New York State's current tax policy which requires individuals earning anywhere from $382,000 to $2.1 million to pay 6.85% taxes.
Under the new proposal, those who earn between $5 and $10 million a year would have to fork over even more capital to the government-- 9.32%, in fact.
Those who earn more than $10 million? The bill would be even higher for them. They'd have to pay 9.82% in taxes.
These tax hikes would, obviously, increase the government's income. It'd increase the government's yearly income by about $1.7 billion.
If the proposal is passed, it'd require about 56,000 New Yorkers to pay more in taxes. The average increase in taxes per person would be $33,000.
Since other people's yearly salary is $33,000, the idea of handing over that much more to the government every year seems jarring. However, $33,000 is little more than a drop in a bucket to some of the state's highest earners.
"It's a fair way to ask people to pay their fair share," said Assembly Speaker Carl Heastie, D-Bronx. "Someone making $5 million or $10 million a year, that's a small sacrifice."
As we said, the new policy would also decrease the taxation for some middle class earners. Married couples who jointly earn between $40,000 and $150,000 would see their taxes decrease from 6.45% to 6.25%, and they'd each save an average of $50.
Under the new proposal, New Yorkers earning less than $40,000, and between $150,000 and $300,000 would see no change in their tax rate.
Still, the new proposal would increase the earned income tax credit for 1.6 million low-income workers, who would receive an average of $110 a year.
If approved by the Senate and governor, these new tax rates would be effective beginning in 2018.
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Heastie said the higher taxes to millionaires would generate revenue to increase funding for schools, the elderly, infrastructure, and other public priorities.
However, the bill is sure to be met with opposition.
"Whether it's income taxes, property taxes, business taxes, user fees, or tolls, we don't support raising taxes or asking hardworking New Yorkers to dig deeper into their pockets to pay more," said Senate Majority Leader John Flanagan.
If this all sounded like gibberish to you, worry not. There's always Taxhub™, the less... taxing way to do your taxes.
As in, with Taxhub™ you can set up an account right from your phone, send pics of any and all relevant tax documents, and have a professional comb through them while you're doing more pressing things like, who knows? Literally anything else.[via Syracuse.com] [Feature Image Courtesy New York Daily News]