• Invest in Our New York Act (“the Act”) targets high earners for major boosts to state revenue
  • The proposed plan includes a total of six new tax bills
  • Tax benefits to go to communities most affected by COVID-19

A new legislative effort to raise New York state funds is promising $50 billion for the 2021 budget season if passed. The Act looks to repeal tax breaks on NY’s wealthiest residents and businesses while giving back to the communities most economically devastated from COVID-19. The most notable provision is a bill to repeal Trump’s Tax Cuts and Jobs Act (TCJA).

The Act includes six bills, all looking to alter current state tax codes.

1. Progressive Income Tax:

  • Projected annual growth: $12-18 billion
  • Progressively raising tax rates on annual incomes $300,000 and higher

2. Capital Gains Tax: $7 billion

  • Projected annual growth: $7 billion
  • A new tax on income earned from investments

3. Heirs’ Tax

  • Projected annual growth: $8 billion
  • Progressively taxing inherited wealth valuing at $2 million and higher

4. Billionaires’ Tax

  • Projected growth: $23 billion (first year), $1.3 billion thereafter
  • Taxing a gain in wealth as income, adding a Constitutional amendment to allow for taxes on other sources of wealth (e.g., investments)

5. Wall Street Tax

  • Projected annual growth: $12-29 billion
  • Tax on financial transactions like trades of stocks and bonds

6. Corporate Tax

  • Projected annual growth: $9 billion
  • Repeal of the TCJA, restore 35% corporate tax rate

You can read more about the plan, in full, here.

Thoughts? Call DSJCPA at 516-541-6549 and visit our website to stay up to date on all COVID-19 news

Devin McQuillan
Associate, Creative Solutions

Contact:
516-541-6549 | Email

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