In addition to the maneuvers aimed at raising taxes on the rich in California, in New York, where the process to raise said taxes isn’t as byzantine, state leaders have agreed in principle on a deal to increase taxes on the wealthy. And this is a reversal from a vow by Andrew Cuomo from earlier in the year to allow increased taxes on the rich to expire.
Gov. Andrew M. Cuomo and legislative leaders on Tuesday announced that they had reached an agreement to raise taxes on New York State’s wealthiest residents as part of a deal to overhaul the tax rates.
The leaders, seeking simultaneously to make the state’s income tax system more progressive and to increase tax collections during a down economy, announced their agreement as lawmakers began to arrive at the Capitol for an expected special session of the Legislature later this week.
The tentative agreement would not only raise taxes for the wealthy, but also cut taxes for the middle class, by creating four new tax brackets and tax rates. The officials said the tax rate changes would generate $1.9 billion in annual revenue for the state.
“This would be lowest tax rate for middle class families in 58 years,” Mr. Cuomo said in a statement. “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.”
Often times you would see constraints put on a tax reform deal like this, forcing it to be budget-neutral. But that’s not what New York or any state needs during a fiscal crisis. They saw the concept of restructuring tax rates and raising revenues as complementary.
I think we have to give an assist to Occupy Wall Street on this one. Back in October, they criticized Cuomo for failing to extend the millionaire’s tax in New York. They demonstrated outside a Huffington Post event where Cuomo was being honored for his marriage equality victory. Now, not even two months later, Cuomo has come in the direction of the protesters. Sen. Gustavo Rivera alluded to OWS in discussing Cuomo’s change of heart.
“I believe Occupy Wall Street changed the national dialogue,” said Sen. Gustavo Rivera. “The conversations we were having 6 months ago got no traction. But things have changed because of what the folks at Zuccotti Park Started.” [...]
“I’ve always believed we need a more progressive tax system,” said Rivera. “I’m glad to hear the Cuomo administration seems to be open to it. We have the greatest economic disparity in New York. The economic gap is as bad as it was was in the depression.”
Raw Story describes it as Cuomo “caving to protesters.” I don’t know that I would go that far, but I think the impact is undeniable.
Not bad for a movement without a set list of demands, eh?




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Crumbs.
Cuomo still sucks.
How about restoring funding for housing subsidies in New York City? Tens of thousands of families are about to face imminent eviction as a result of serious cuts spearheaded by Governor Cuomo.
More like “There go my people; I must lead them.”
Maybe if our the initial reaction of our so-called leaders was to…you know…lead, get out in front of the will of the people instead of having to be dragged into doing the right thing kicking and screaming there wouldn’t have been a need for the 99% movement.
Eh? What took Cuomo so long? And why’d he HAVE to have the Occupy movement to point out to him that the 1% should, you know, pay their frickin’ FAIR SHARE?? I’ll bet anything that the marginal tax rates on gazillionaires (of which there are PLENTY in New York state) is still not high enough.
Nope: I’m not all that satisfied.
What does Grover have to say about all this?
Yes he does.
He totally suffocated ANY investigation of malfeasance regarding any part of the meltdown.
Another fox in the chicken coop. Since talk is cheap, he maintained a deafening silence after the meltdown, and obviously never laid a predicate down for Schneiderman to continue when he came in.
He obviously got his price since he is governor.
Except that, according to Yves Smith, the Financial Times is reporting:
So, the richest New Yorkers will pay 15 basis points less in income tax under this arrangement, yet we call it a tax increase. Truly Orwellian.
My, thought, too. One of the ways of undercutting someone’s political power is to get his supporters worried about continuing to go the way he’s leading.
I don’t know much of anything about the political situation in New York, but I’d want to know a lot more before I simply concluded that Cuomo “caved” to the protests.
Yup — Cuomo the Younger has achieved a PR coup, but he has in fact lowered the tax millionaires were paying by doing away with the Millionaires Surcharge and instead putting in place a new, lower effective rate. Higher than if the surcharge had just expired, but the rich are…tah dah!…A TAX CUT.
Cuomo is USING the Occupy Wall Streeters’ efforts to cloak this TAX CUT in the guise of an INCREASE.
What does his father think of his son’s governing???