ALBANY, N.Y. (NEWS10) – New York has some of the highest property taxes in the country.
Despite being such a high tax state, Governor Andrew Cuomo is proposing more than $1 billion of new taxes and fees to help make up the budget deficit.
As a way to combat the reduction of state and local tax deductions at the federal level, Gov. Cuomo is proposing changing the tax code altogether. This means switching from an income tax to a payroll tax. If you don’t understand it don’t worry, not many people do.
“You’re talking about totally restructuring our tax system in New York and it sounds quite complicated from what you said and somewhat confusing,” Senator Catherine Young (R-Chautauqua) said.
Robert Mujica, Director of NYS Division of the Budget, says they will have the full details of how the state could make the switch by February 15th. Legislators say they are still worried this will not give them enough time to fully vet this complete overhaul of the system.
“It would be a very difficult undertaking to say to people, don’t worry about it we are reducing your wages and it may affect your retirement and it may affect collective bargaining,” Young said.
“The employee should still be taking home the same amount of money,” Mujica said.
Another topic that was brought up repeatedly is the newly proposed surcharge tax on manufactures of opioids. But the real question brought up repeatedly.
“If it costs more to manufacture a drug usually it is passed along to the consumer, am I correct?” Young said.
The budget division could not confirm that the added cost would not be passed along to the customer. But did mention how the tax will raise $127 million in the first year that will go towards Opioid Prevention and Treatment.
“100 percent, wouldn’t be used for anything else?” Young said.
“I’m very skeptical, I think its dubious. I think they’ll just pass the cost on to constituents,” Senator Jim Tedisco (R-Schenectady) said.
New Yorkers could also be paying sales tax when they buy from online retailers such as Amazon. There is a Supreme Court case in the works that will have to be decided first.