NY TIMES
Congress dodged the so-called fiscal cliff in part by raising taxes on high incomes. California voters addressed their state’s school budget troubles with a surcharge on big incomes. And now Albany has decided to raise revenue with a high income tax rate for people with seven-figure incomes.
Gov. Andrew M. Cuomo and legislative leaders are finalizing a surprise deal to extend a high-tax bracket for the state’s top incomes. The bracket, first approved by lawmakers in late 2011 as a temporary response to disappointing revenues, does not expire until the end of 2014. But that year is an election year, and by deciding to renew the bracket now, Mr. Cuomo and lawmakers can avoid debating high tax rates while running for re-election.
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“I think partly there’s some recognition that the level of income inequality has grown, and the level of income inequality has especially grown in places like California and New York,” said Kim Rueben, a senior fellow at the Tax Policy Center.
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The extension of the tax bracket was the most surprising change to come out of this year’s budget negotiations, which Mr. Cuomo and legislative leaders were close to wrapping up on Tuesday. The budget is supposed to be adopted by April 1. The leaders have sped up negotiations this year in an effort to allow lawmakers to get home for Passover and Easter.
The budget agreement will also include a gradual increase of the minimum wage over the next three years, and Mr. Cuomo and lawmakers were discussing whether to include language intended to reduce the number of low-level marijuana arrests that result from police stops in New York City. They are also negotiating changes to the gun laws that were enacted in January.