New York Governor Andrew Cuomo and other legislative leaders agreed to income tax cuts for New York taxpayers who make $40,000 to $300,000. This will save most middle-class families $300 to $400 a year. The tax cuts will be funded by $2 billion from a tax increase on New Yorks wealthiest citizens. These highest New Yorkers will pay an 8.2% rate, increased from 6.85%. New Yorkers who file jointly and make $300,000 to $2 million, or single filers who make $150,000 to $1 million will remain being taxed at 6.85%. Governor Cuomo was always against any tax increase and during his campaign he said there would be none. He used to be opposed to creating a “millionaires tax” and wanted to avoid further cuts in education, and health-care spending. He said millionaires tax would drive employees away to other states. Now, Governor Cuomo says the 4.4 million middle-class taxpayers who will receive the cuts will revive the economy with up to $1 billion in spending. It would be the lowest taxes for middle-class families in 58 years. It will put thousands of people to work. Other elements of the deal include: $1 billion fund to rebuild roads, bridges, parks, dams, and schools and invest in energy efficiency; a $25 million tax cut for manufacturers; a reduced Metropolitan Transportation Authority payroll tax for small businesses and end it for private and parochial schools; $25 million in tax credits for hiring unemployed inner-city youths; legislative leaders agreed to pursue a constitutional amendment for private-sector casinos; and flood recovery grants of $21 million and tax credits for small businesses and farms and counties.
New York took the first step, and has done regionally what President Obama has be wanting to do nationally since January. They took the first step to raising taxes on the wealthiest taxpayers, allowing middle-class families to save a decent amount of money on their taxes. Governor Cuomo reminds me a lot of Congress. At first he was completely against tax millionaire’s more than the middle-class because he feared, what I’m sure members of Congress and the Supercommittee feel, that the upper class taxpayers would rebel and leave the state. Well, we will see what happens when these taxes go into effect, but from what Cuomo is projecting, it seems like there are more pros than cons. More money for the middle-class families means more spending money, which means more money put into the economy, and at the end, Cuomo listed credits, grands, and rebuild funds that would come as a result to the millionaire’s tax. Maybe, if Congress can witness how the people of New York act after they do their taxes this time around, they’ll be able to decide if raising taxes on the wealthies of all Americans is right to do or not.
http://online.wsj.com/article/APcd653f82c6ab4f82b9bbc61080528e30.html?KEYWORDS=taxes
Two Changes to the Tax Code
- Raise taxes on the wealthiest of Americans. We need to raise a lot of money to even put the smallest dent into lesseng the federal deficit. It is impossible for most of it to come out of the middle-class families, even if we do make up a majority of the economy. There is no reason that taxpayers who much so much more than the average family pay so much less in taxes. The wealthiest Americans have a lot more disposable income than do middle-class families. They have the ability to pay the extra taxes. Middle-class families need all the money they can get just to pay the bills, buy the groceries, and put a little extra away in an emergency fund if they can. The wealthies Americans should pay their full share, maybe even more, of the tax burden.
- Cut tax loopholes for corporations. Just like putting more of the tax burden on the wealthiest taxpayers, corporations need to pay their fair share to reduce the deficit as well. Exxon/Mobil is one of the wealthiest companies known, and they not only didn’t pay any federal income taxes in 2009, but received an IRS refund for $156 million. GE was another company that didn’t pay federal income taxes. A lot of the reasons they don’t pay any taxes is because of unfair tax breaks and loopholes that tax planners set up during the year to reduce corporations liabilites. Some of these are oil and gas company tax breaks and tax breaks for coprorations that oursource jobs. These loopholes and breaks need to be closed, and corporations need to pay thir fair share of federal taxes to raise more money to reduce the deficit.
Two Changes to the Budget
- National Defense. With a majority of our troops coming home, we can save some money on the national defense budget. Of course, we shouldn’t take so much money out of this area that it puts our national safety at risk or that we can’t take care of our soldiers while they are back home, however, it should not cost as much money to take care of our soldier while they are on our soil than when they’re overseas. We can’t short change our soldier, but we do need to be conscious that we have other areas of the budget that might need extra money than the national defense area. Especially, if the money is not being put to good use.
- Student Financial Aid for College. Everybody always says how children are the future. While we’re sitting in our classes our professors always say we are the future of the world, we are going to make a difference. How are students suppose to make a difference if they can’t afford to go to shool. Personally, I attend Central as an undergraduate all on loans, and I’m sure I am not the only one. I know I can make a difference, but unless I got the opportunity to receive a federal loan, I would not be where I am today. There are so many other people in my position, or positions worse than I am. It is the hardest thing to get a loan, but it should be seen as an investment. You’re suppose to invest in your future. That’s what many adults say college is. There can be the next astronaut or doctor to cure cancer out there, but if they can’t afford to go to school their potential will never be revealed. The government needs to help students more because if there are more people in the world without higher education, that is less people getting paid, less taxes, less money for the government in the future. You have to give a little to get a lot.