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$212B budget agreement reached: Taxes on wealthy, billions for small biz recovery, rent and mortgage recovery, and childcare

Legislators ironed out the details around a $212 billion spending plan that will ensure billions goes to rent relief and immigrant workers living in the country unlawfully.

Gov. Andrew Cuomo and lawmakers reached a deal that will also raise taxes on the wealthy and prioritize funding for schools.

“I’m quite comfortable with this budget,” state Senator Liz Krueger told Spectrum News. “We’re not significantly increasing borrowing. We are asking the people who have been doing the absolute best in our economy to give us slightly more in tax revenue. It won’t hurt them. They’ve already seen a significant cut in their taxes during the Trump administration.”

Here’s how the tax rate increases play out for New Yorkers:

– Those making more than $1 million will see their tax rate increase by approximately 1%.

– Two new tax brackets will be created for those making more than $5 million and $25 million per year.

“Thanks to the state’s strong fiscal management and relentless pursuit to secure the federal support that the pandemic demanded, we not only balanced our budget, we are also making historic investments to reimagine, rebuild and renew New York in the aftermath of the worst health and economic crisis in a century,” Gov. Cuomo said.

The budget also includes billions in federal aid, which was part of the last coronavirus relief package.

A few other major spending items include $2.4 billion for childcare expansion, $1 billion for small business recovery, $2.4 billion for rent and mortgage relief, and long-term care changes.

RELATED: Inside the agreement to spend $212 billion this year (The Wall Street Journal)