Today: 22.04.2018
News
Opinion
Business
Living
Metro
Tech
Sport

Last News

15:18
Today
15:02
Today
14:58
Today
14:12
Today
13:52
Today
13:06
Today
11:41
Today
11:05
Today
05:55
Today
05:06
Today
01:53
Today
00:39
Today
00:02
Today
23:30
21.04.2018
20:00
21.04.2018
19:38
21.04.2018
18:53
21.04.2018
17:44
21.04.2018
17:08
21.04.2018
16:18
21.04.2018
16:01
21.04.2018
15:38
21.04.2018
14:21
21.04.2018
12:45
21.04.2018
11:42
21.04.2018
08:48
21.04.2018
08:13
21.04.2018
07:46
21.04.2018
07:35
21.04.2018
07:29
21.04.2018

Cuomo’s dug New York into a giant tax trap.

The opening salvo of Cynthia Nixon’s challenge to Gov. Cuomo included a claim guaranteed to stir the passions of true-blue progressives: Cuomo, she said, “has given massive tax breaks to corporations and the super-rich.” But aside from extending $420 million a year in tax giveaways to film and TV producers — which Nixon, to her...
Time: 19:52     Date: 15.04.2018
Last US News - Opinion: Cuomo’s dug New York into a giant tax trap. NY Post 24 - US News

But aside from extending $420 million a year in tax giveaways to film and TV producers — which Nixon, to her credit, has at least mildly questioned — Cuomo hasn’t given “massive” tax breaks to anyone.

Quite the contrary: In the real world, Cuomo has further boosted the state’s already heavy reliance on taxes paid by income millionaires. This has made Albany’s revenue base more fragile and volatile — a problem aggravated by the new federal cap on state and local tax deductions, which effectively raises total tax rates for New York’s highest earners.

At the root of this trend is New York’s so-called “millionaire tax,” first enacted under Gov. David Paterson as a temporary three-year measure to deal with the financial crisis in 2009. The top rate was pegged at a flat 8.97 percent, nearly one-third higher than the existing rate of 6.85 percent.

Starting in his 2010 campaign, Cuomo said he opposed extending the higher tax beyond its sunset date. But at the end of 2011, his first year in office, he changed his mind and extended most of the tax for three more years at a slightly lower 8.82 percent, applied as a flat rate to the incomes of single filers earning $1 million and couples earning $2 million. To attract Republican Senate support, this was packaged with temporary rate cuts for middle-class taxpayers.

Since then, the governor has pushed through cuts in both corporate and estate taxes, a series of temporary tax credits and property tax rebates and the first installment of a permanent multiyear cut in middle-class income taxes. He’s also expanded state pre-kindergarten funding and promised “free” public university tuition for students from families earning up to $125,000.

At the top of the state’s tax pyramid (as of 2015, according to the latest state data) are about 47,000 taxpaying households with adjusted gross incomes of more than $1 million — including more than 25,000 households in New York City, which adds its own 3.9 percent income tax to the state total.

New York’s state income-tax base also includes another 54,000 non-resident income millionaires — taxed at lower effective rates because their capital gains and dividends are beyond the reach of Empire State tax collectors. The nonresident share of high earners had been rising steadily, even before Cuomo took office — and is likely to grow more now that the feds have imposed a $10,000 cap on SALT deductions, which averaged $500,000 for New York’s resident income millionaires.

In a desperate effort to “thwart” the SALT cap, Cuomo’s latest budget includes two tax workarounds: an optional corporate-payroll tax, which would be deductible as a business expense; and a scheme for allowing taxpayers to offset most of their taxes with (theoretically) deductible contributions to government-sponsored “charitable” trust funds. But the payroll tax is so convoluted it’ll appeal to few if any corporate employers, and the IRS is likely to disallow the charitable-deductions dodge.

Meanwhile, the progressive advocates backing Nixon’s candidacy have called for even higher millionaire taxes. So have Speaker Carl Heastie and his Democratic super-majority in the state Assembly. Raising top tax rates is a perennial item on Mayor de Blasio’s agenda, as well.

The governor has made clear his concern that the SALT cap could drive high-income residents out of the state. Yet in the face of Nixon’s challenge, he’s more tightly embraced the unions that ultimately drive most of the demand for higher taxes.

It’s certainly a conundrum — of Cuomo’s own making.

E.J. McMahon is research director of the Empire Center and adjunct fellow with the Manhattan Institute.

Opinion

Last US News - Opinion: Democrats are getting desperate as Mueller stalls. NY Post 24 - US News
Democrats are getting desperate as Mueller stalls.
It’s not just Hillary Clinton who can’t quit Russia. The whole Democratic Party keeps going back to 2016. In a move that...
Last US News - Opinion: Facebook is actually stalking everyone. NY Post 24 - US News
Facebook is actually stalking everyone.
Facebook is stalking you, even if you’re not signed up — and it really, really doesn’t want to stop. The latest proof,...
Last US News - Opinion: Andrew Cuomo’s ‘undocumented’ imagination. NY Post 24 - US News
Andrew Cuomo’s ‘undocumented’ imagination.
Count Gov. Cuomo among the many gullible people who apparently believe everything they read on the Internet. And also among...
Last US News - Opinion: Medical research has a woman problem. NY Post 24 - US News
Medical research has a woman problem.
Before approving “female Viagra” in 2015, the FDA asked for a study to see if it was safe when taken with alcohol. The...

Opinion

Last US News - Opinion: Democrats are getting desperate as Mueller stalls. NY Post 24 - US News
Democrats are getting desperate as Mueller stalls.
It’s not just Hillary Clinton who can’t quit Russia. The whole Democratic Party keeps going back to 2016. In a move that...
Last US News - Opinion: Facebook is actually stalking everyone. NY Post 24 - US News
Facebook is actually stalking everyone.
Facebook is stalking you, even if you’re not signed up — and it really, really doesn’t want to stop. The latest proof,...
Last US News - Opinion: Andrew Cuomo’s ‘undocumented’ imagination. NY Post 24 - US News
Andrew Cuomo’s ‘undocumented’ imagination.
Count Gov. Cuomo among the many gullible people who apparently believe everything they read on the Internet. And also among...
Last US News - Opinion: Medical research has a woman problem. NY Post 24 - US News
Medical research has a woman problem.
Before approving “female Viagra” in 2015, the FDA asked for a study to see if it was safe when taken with alcohol. The...
Last US News - Opinion: Obama bureaucracy left our private data more vulnerable than ever. NY Post 24 - US News
Obama bureaucracy left our private data more vulnerable than ever.
Without your knowledge or permission, the Obama administration collected and warehoused your most private bank records and...

Living

US Living News: Does being late to work really matter to an employer?. NY Post 24 - US News
Does being late to work really matter to an employer?.
I have a difficult, long commute that is unpredictable, so I am often late to work. However, I am a hard worker who produces...
US Living News: Man bitten by shark, bear, snake in less than 4 years. NY Post 24 - US News
Man bitten by shark, bear, snake in less than 4 years.
A Colorado man achieved a distinction last week that few people would probably want to match. When Dylan McWilliams was bitten...
US Living News: You can sink your chances of getting hired by freezing up at the interview. NY Post 24 - US News
You can sink your chances of getting hired by freezing up at the interview.
Most people bring copies of their resumes to interviews, but one woman showed up at the Lower East Side offices of Finder.com...
US Living News: American who went to war for Israel, lost an arm and went back. NY Post 24 - US News
American who went to war for Israel, lost an arm and went back.
On January 8, 2009, Miami native Izzy Ezagui was sitting in a tent about a mile from the Gaza Strip. A soldier in the Israel...
US Living News: These ladies share the secret to living for a century. NY Post 24 - US News
These ladies share the secret to living for a century.
Her secret to living to 100 is simple: Stay single. Lucille Watson, who becomes a centenarian Sunday, believes living fancy-free...
US Living News: My 30-year-old husband had a stroke on our babymoon. NY Post 24 - US News
My 30-year-old husband had a stroke on our babymoon.
Dave Levy turned to his wife midflight, en route to their Hawaiian babymoon — one last getaway before the birth of...
US Living News: Medical research has a woman problem. NY Post 24 - US News
Medical research has a woman problem.
Before approving “female Viagra” in 2015, the FDA asked for a study to see if it was safe when taken with alcohol. The...
US Living News: From Akron to Youngstown, this is life in the Rust Belt. NY Post 24 - US News
From Akron to Youngstown, this is life in the Rust Belt.
The Rust Belt has no specific borders and is less a geographic region than a term used to describe the country’s once-proud...

Business

Last US Business News: Walmart’s milk production hits farmers hard. NY Post 24 - US News
Walmart’s milk production hits farmers hard.
Being a dairy farmer is an utterly tough slog in the best of times. Now they have plenty more beef. Declining consumption,...
Last US Business News: Why are cars so much harder to repair these days?. NY Post 24 - US News
Why are cars so much harder to repair these days?.
Dear John: I’ve been writing to politicians for decades about car companies that have design engineers who burn the midnight...
Last US Business News: Corporate diversity is latest trend in activist investing. NY Post 24 - US News
Corporate diversity is latest trend in activist investing.
Achieving diversity on corporate boards is quickly becoming the next hot spot in activist investing. At least that was the...
Last US Business News: Hedge funders’ lavish gala raises $1.5M for Lincoln Center. NY Post 24 - US News
Hedge funders’ lavish gala raises $1.5M for Lincoln Center.
For the hedge funders in attendance at Monday’s Alternative Investment Industry Gala, it looked as though Wall Street’s...
Last US Business News: Huge college endowments too rich for my taste. NY Post 24 - US News
Huge college endowments too rich for my taste.
Nothing better demonstrates the utter gall of ultra-liberal socioeconomics these days than the sheer nerviness of large university...
Last US Business News: Americans owe more than $930B in credit debt. NY Post 24 - US News
Americans owe more than $930B in credit debt.
Americans, in good times and bad, love debt — especially the plastic kind, despite its steep price. Those are some of the...
Last US Business News: Can you recover funds from old savings passbook?. NY Post 24 - US News
Can you recover funds from old savings passbook?.
Dear John: I’m a longtime reader of your column and a big fan of your common-sense answers. To solve my problem I believe...
Last US Business News: Celeb wavered on letter to Cuomo urging minimum wage hike for tipped workers. NY Post 24 - US News
Celeb wavered on letter to Cuomo urging minimum wage hike for tipped workers.
At least one small-screen actress had second thoughts about signing a letter to Gov. Cuomo — 16 Hollywood actresses including...

Metro

Metro News: Off-duty cop injured in car crash: officials. NY Post 24 - US News
Off-duty cop injured in car crash: officials.
An off-duty NYPD officer was seriously injured when he was hit by a car on a Long Island highway early Sunday morning, authorities...
Metro News: 2-year-old in critical condition after being struck by car. NY Post 24 - US News
2-year-old in critical condition after being struck by car.
A two-year-boy walking with his mother Saturday night scooted away and was hit by a car exiting a parking lot at Staten Island’s...
Metro News: CUNY ‘integrity expert’ is using shady tactics to boost his salary. NY Post 24 - US News
CUNY ‘integrity expert’ is using shady tactics to boost his salary.
A CUNY honcho hired as an integrity expert is collecting both a pension and a taxpayer salary, with his paychecks funneled...
Metro News: Sister, widow of Christmas figurines mogul fight over $54M estate. NY Post 24 - US News
Sister, widow of Christmas figurines mogul fight over $54M estate.
In the end, it wasn’t a wonderful life for a Manhattan Christmas-ceramics mogul whose family is now sparring with his much...
Metro News: De Blasio puts donors in charge of campaign-finance reform. NY Post 24 - US News
De Blasio puts donors in charge of campaign-finance reform.
Mayor de Blasio has appointed his own donors to examine and reform the city’s campaign-finance laws. Seven of the 15 people...
Metro News: How a church destroyed on 9/11 became mired in controversy. NY Post 24 - US News
How a church destroyed on 9/11 became mired in controversy.
St. Nicholas Greek Orthodox Church was to be a “beacon of hope” at the World Trade Center site, glowing at night as a...
Metro News: Students attacked, threatened thousands of school employees last year. NY Post 24 - US News
Students attacked, threatened thousands of school employees last year.
City school kids aren’t just hitting the books, they’re smacking their teachers. More than 10,000 city school employees,...
Metro News: Cops save elderly tourist who suffered heart attack in Times Square. NY Post 24 - US News
Cops save elderly tourist who suffered heart attack in Times Square.
These cops are all heart. Five heroic officers came to the rescue of an elderly man who suffered a cardiac arrest as he celebrated...

Sport

Last US Sport News: The ironic weakness during the Mets’ hot start. NY Post 24 - US News
The ironic weakness during the Mets’ hot start.
ATLANTA — Now it’s time to get the big boys hitting. As manager Mickey Callaway evaluates the Mets’ fast...
Last US Sport News: Greg Hardy is getting a chance to be a pro athlete again. NY Post 24 - US News
Greg Hardy is getting a chance to be a pro athlete again.
Former Carolina Panthers and Dallas Cowboys defensive end Greg Hardy is set to make his MMA debut as part of the “Dana...
Last US Sport News: Mets-Braves game gets rained out. NY Post 24 - US News
Mets-Braves game gets rained out.
The Mets can catch their breath and enjoy a few days off. The Mets-Braves game in Atlanta was postponed due to rain on Sunday,...
Last US Sport News: Derek Jeter interview gets awkward with ‘mentally weak’ rip. NY Post 24 - US News
Derek Jeter interview gets awkward with ‘mentally weak’ rip.
If only Derek Jeter could trade Bryant Gumbel. An interview with the Marlins CEO and Yankees legend got somewhat heated —...
Last US Sport News: Gleyber Torres says he’s ready for this as the moment arrives. NY Post 24 - US News
Gleyber Torres says he’s ready for this as the moment arrives.
The question heading into spring training for Gleyber Torres was whether he was ready to break through to the majors. On...