NYS Increases Tax & Spend, Illinois Rolls Taxes back to Keep Companies

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Governor Cuomo was so proud of his minimal budget cuts and huge tax package that he told the Republicans to vote for it unanimously.

It almost was unanimous. Well, sure, why not, it means New York will have the nation’s sixth highest tax rates. Who wouldn’t want to vote for that? New York City residents will pay the highest income tax rate in the nation at 12.5%.

The tax increases for job producers, the rich,is huge and most of the money goes to a new infrastructure fund and the waste-producing MTA, not to cuts for the middle class. For example, a family of four making $65,ooo will save about $222. A tax cut for the $150,000-$300,000 crowd merely replaces another tax that is set to expire and they will end up paying the same 6.85%. The higher tax brackets will pay 8.82%.

Meanwhile, Illinois is struggling to keep three major companies, all of whom are considering moving to other states. Sears, for one, said it would leave by the end of the year if a deal was not worked out. CBOE, the country’s largest single options-trading venue, had taken more of a back seat role, but had also warned it could move out of state over the issue. Over 100 other companies in Illinois are going to demand tax relief.

…The (Illinois) tax package includes $100 million in incentives for Sears Holdings Corp. and CME Group Inc., which runs the Chicago Mercantile Exchange and the Chicago Board of Trade. A smaller financial company, CBOE Holdings Inc., would also share in the tax relief.

To help reduce anger over the aid for those companies, the package also includes roughly $120 million in more general tax breaks for all businesses and about $110 million in relief for poor and middle-class families…Businesses need tax breaks or they will leave

 

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