ALBANY — The new state budget is expected to extend New York’s top income-tax rate in a move that would allow Gov. Cuomo to avoid the dicey issue during his 2014 re-election campaign.
Cuomo and legislative leaders are looking to maintaining the 8.82 percent income-tax rate, known as the “millionaires tax,” on the highest earners through 2015. It’s currently due to expire at the end of 2014
The Partnership for New York City noted that federal tax increases this year put the “effective” rate on the city’s highest earners above 50 percent.
Extending the “millionaires tax,” the partnership said in a recent statement, “is the worst possible message New York state could send to our most important job creators and revenue generators.”
The plan also includes keeping rates lower on married filers with incomes between $40,000 and $300,000.
“I think it makes our tax code more progressive,” Assembly Speaker Sheldon Silver (D-Manhattan) said of the anticipated extension.
Earlier, Senate GOP leader Dean Skelos said “there is a good possibility that’s going to happen,” when asked about the extension.
The new rates were adopted in 2012 and are due to revert to 6.85 percent in 2015 if Albany doesn’t act.
The expected money from the extension would help pay for an election-year goodie lawmakers revealed yesterday: “Family tax relief” checks of $350 in 2014 for every New Yorker with at least one child 18 or younger and income between $40,000 and $300,000.
State leaders may also partially repeal a seven-bullet limit in gun magazines next month, according to Silver, who cited “inconsistencies” in Cuomo’s new gun-control law that allow the old 10-bullet magazine limit at firing ranges.
But Cuomo insisted there was “no discussion” of the idea.
State leaders are inching toward final agreement on a $143 billion budget for the fiscal year that begins next month.
The new budget is expected to boost school aid by an extra $500 million-plus — potentially giving the city back much of the $240 million increase it forfeited by blowing a Jan. 17 deadline to develop an approved teacher-evaluation plan.
Senate co-leader Jeff Klein (D-Bronx) cast doubt on a potential deal to decriminalize small amounts of public pot possession in the city as a stop-and-frisk reform — which would be coupled with criminalization of synthetic pot and bath salts.
“I don’t think we have enough votes in the Senate,” he said.Though state lawmakers hope to wrap up negotiations and have a budget plan to vote on by the end of the week, before the start of religious holidays, Cuomo insisted, “I’m in no rush . . . I want to do it right.”