The details of the potential deal between lawmakers and Gov. Andrew Cuomo are beginning to emerge this afternoon—with a $250 million cut to the MTA payroll tax, $50 million for storm-ravaged businesses and governments and an overhaul of the state’s tax code.
The revenue from the tax changes, pegged at nearly $2 billion, would be used to provide a middle-class tax cut as well as relief for storm-hit areas and aid to businesses stung by a payroll tax in the Metropolitan Transportation Authority service area—which includes Westchester, Putnam and Dutchess counties.
The new tax rates would be lowered for all income brackets, but higher than the ones for the wealthy that are set to expire at year’s end. (Capital Tonight first had the details this morning.)
For those making more than $2 million a year, the tax rate would fall from 8.97 percent to 8.82 percent. For people earning between $300,000 and $2 million, the rate would fall from between 7.85 percent and 8.97 percent to 6.85 percent.
For those earning between $150,000 and $300,000, the rates would drop from 6.85 percent to 6.65 percent.
For those earning between $40,000 and $150,000 the rates would drop from 6.85 percent to 6.45 percent.
Under the potential deal, the MTA payroll tax would be reduced for small businesses and private schools would be exempt. The Daily News reported that businesses with annual payrolls below $1.75 million would see a reduction.
Sen. Thomas Libous, R-Binghamton, has pushed for added storm aid, particularly for the Southern Tier, which was heavily damaged in Tropical Storm Lee.
The $50 million package would extend to businesses, non-profits, counties and farms, according to the framework of a potential agreement.