Cuo-WOAH: Affordable Housing Coming to NY
During a State of the State speech in January, New York Governor Cuomo introduced a bill that would allow the state’s Housing Trust Fund Corporation to finance the purchase of empty hotels and offices and convert them into rentals for low income & homeless New Yorkers.
Under the bill, nonprofit landlords would own and manage eligible properties that would be made permanently affordable to those making less than 80% of the area median income.
Pricing and development are the biggest remaining concerns for the project. Cuomo has allocated roughly $100 million in funding for the conversions to affordable housing but is also counting on additional funding from Biden’s infrastructure plan.
While the bill has cleared both houses, the governor still has yet to sign it.
AZ’s Flat Tax Means a Lower Max For High Earners
Arizona Governor Doug Ducey has proposed and advocated for a 2.5% flat tax rate across all incomes throughout the state. If passed, it would provide a tax cut for everyone, including those in the lowest tax bracket who are charged the current minimum rate of 2.59%.
Even high income earners would get a significant tax break. Last year, the state narrowly passed a 3.5% surtax on individuals (filing single) earning over $250K annually. Along with the surtax, the new bill would act as a financial shield for wealthy Arizonians; the state’s maximum total income tax would cap at 4.5%. High earners would be charged the 3.5% surtax, but only an additional 1% from the state.
Gas Tax Will Not Drive Funding For Infrastructure
Over the weekend, the White House confirmed its stance on the gasoline tax and Biden’s intention to prevent similar tax hikes on the middle class. As Congress remains split on the President’s infrastructure budget, his unwavering stance on the gas tax may only further the rift.
Indexing gas taxes for inflation is projected to raise about $30 billion in 10 years; the White House— if it’s looking to keep the infrastructure budget at its current price— would need to provide an alternative source for that income.
The White House has stated and reiterated that the infrastructure plan, for the most part, will not come at the expense of those earning less than $400K annually. Biden instead has advocated for increased funding to the IRS to crack down on enforcement and improve the country’s longstanding inconsistencies and issues with tax collecting.
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