By Rusty Brooks

While the Biden administration is considering the first major federal tax hike in decades, the NY state legislature is looking at similar measures.

Democrats who control the state legislature took another step toward raising tax rates for wealthy New Yorkers Monday, with each chamber presenting its own proposal for this year’s state budget — valued at more than $192 billion, NPR reported.

Governor Cuomo is not thrilled with the idea.

“How you raise revenue can actually raise revenue, or can cost you revenue,” Cuomo said. “If you’re not careful the way you do it, you may actually lose money for the state because businesses and residents will make changes.”

Historically Cuomo has been against raising taxes on the wealthy.

Cuomo has warned that higher taxes could drive the rich out of New York and take their tax revenue with them. The top 1% of earners in New York generates nearly half of the state’s revenue from income taxes, according to state data, NPR reported.

NY Post Summarized the “progressive” tax proposals:

• A graduated tax hike on millionaires. The current income tax rate for single filers making more than $1 million and couples earning more than $2 million is 8.82 percent. That rate would rise to 11.85 percent. There also would be two new brackets: one for taxpayers earning between $5 million and $25 million and another for those making more than $25 million. The former would be taxed at a 10.85 percent rate, while the later would be slammed with 11.85 percent.

The moves would generate an estimated $4.3 billion, the lawmakers said.

• A new capital gains tax of 1 percent on those earning more than $1 million a year, boosting state coffers by about $700 million.
• A new progressive state tax on those with pied-a-terres, mansion town homes — or anything in between — used as a second home in New York City. The new levy would raise a projected $300 million for the state.
• An estate tax boost from 16 percent to 20 percent, raking in another $130 million.
• A new 18 percent “surcharge” on corporate franchises, utilities, and insurance companies — which could mean higher bills for customers. That tax would generate $1 billion, the lawmakers said.
• The reinstatement of a minimum business tax on corporate capital, earning another $150 million for the state.
• A recording tax on “mezzanine debt and preferred equity investments,’’ which would add another $171 million to state coffers.

Senator Schumer earlier this month claimed that the new COVID stimulus package would essentially wipe out NY’s budget deficit.