From the Fair Share Blog:
Governor David Paterson and the New York Legislature outlined a $131.8 billion agreement on Sunday, a move representing the conclusion of lengthy — and secretive — budget negotiations. When finalized, the agreement would close the state’s gaping deficit through a combination of billions of dollars in new taxes, financing from the federal stimulus and a substantial slowdown in the growth of health care spending.
According to the New York Times, “A major part of the tax portion will come from a plan to temporarily raise taxes on New York’s highest earners, starting with single filers who earn more than $200,000 and married and joint filers who make more than $300,000.”
This is a great step for New York. This sort of tax reform will raise sorely needed revenue and reduce the magnitude of painful cuts to healthcare, education and other essential services New Yorkers rely on every day. As we’ve said before, a fair solution to the budget crisis will necessarily mean cuts to popular programs — but the wealthiest New Yorkers must also pitch in and shoulder a reasonable share of the burden.