NEW YORK (WCBS 880) – Lawmakers in Albany appear to be getting close to a deal on a state budget, including significant tax increases on the wealthy and corporations.
It was the most contentious issue in a very contentious budget: Gov. Andrew Cuomo, long averse to tax increases, wanted to keep them limited, while leading Democrats in the Legislature said more needed to be done.
The Wall Street Journal reported Sunday that a budget deal would raise corporate and income taxes to create an extra $4.3 billion a year. That’s down from lawmakers’ initial proposal of $7 billion. Cuomo had wanted $1.5 billion.
New York City’s top earners would pay the highest tax rate in the nation under the agreement, according to the report.
The additional $4.3 billion in revenue would go to small businesses, renters and undocumented workers as they recover from the pandemic.
Mayor Bill de Blasio is among those making the call to raise taxes on the rich.
“The wealthy are not even close to paying their fair share in taxes, and we need them to,” the mayor said last week.
De Blasio said fears of rich people leaving New York are overblown.
“Wealthy folks are going to be wealthy either way, and there are so many reasons that so many of them want to be here in New York City,” he said.
Lawmakers are also reportedly close on a framework to legalize online sports betting, along with expanding pre-K across the state.
State Comptroller Thomas DiNapoli said if a budget isn’t adopted on Monday, paychecks for about 40,000 state workers could be late.