14 THE QUEENS COURIER • MARCH 9, 2017 FOR BREAKING NEWS VISIT WWW.QNS.COM “Over Two Decades Of Personalized Service” [email protected] Call Now & End Your Tax Nightmare! �������������������������������������� �������������������������������������� �������������������������������� �������������������������������������������������� ������������������������������������������ Co-Author of the best selling book “Breaking the Tax Code” �������������������������������� �������������������������������� Salvatore P. Candela, EA, ATA, ABA Enrolled Agent - Tax Advisor ���������������������������������������������������������������� ������������������������������������������������������ TAX TIPS State risks budget crunch with “Millionaires Tax” BY JOHN SAVIGNANO The State Legislature will soon decide if New York will have the 14th-highest income tax rate in the U.S., the second or stay at seventh. In doing so, it will also dictate whether the combined local and state tax rate for the city’s top earners will nearly match California’s skyhigh 13.3%, imposed on anyone making more than $1 million. And it will gamble on whether high income taxes send rich people felling to states with low or no taxes on earnings. Th is is a story of three options, each with predicable political advocates. New York’s “millionaire’s tax” is scheduled to expire at the end of the year, which would drop the highest rate to 6.9%, or 14th in the nation. Th is is preferred by the state’s Senate Republicans, and the Partnership for New York City last week intensifi ed its support for it. Governor Andrew Cuomo wants to keep the millionaires tax at its current rate-and the $4 billion a year it generates. Th at would leave New York with the seventh highest rate in the nation. Assembly Democrats have proposed raising the tax to between 9.3% and 9.8% for those making between $5 million and $100 million. Anyone making more than that would pay 10.3%, although, as the Empire Center for Public Policy points out, no one knows how many taxpayers would be aff ected. Th e center says fewer than 100. Th e Partnership for New York City says relying on so few to pay so much is risky, noting that the top 1% of state taxpayers contribute 42% of all income tax revenue. Th e partnership also zeros in on the impact in the city, where the top local rate of 3.9% makes the millionaires tax especially onerous. Th e 12.7% combined rate is about the same as in California and almost 3 percentage points higher than it is anywhere else. Another way to consider the numbers: Taxpayers in the top bracket pay more than half of any amount they earn above $2 million to the state or the local government, before deductions. But so far there is no convincing evidence that California’s tax rate has sparked an exodus from the state, although it is easy to fi nd a few anecdotes of people who have left . Th e question is whether the same would hold true in New York. Here is what’s indisputable: Incomes of the rich are highly volatile and largely dependent on the securities markets. By increasing its reliance on wealthy taxpayers, New York (and California) may see its budget implode when the economy faces a downturn. John Savignano is a partner with Savignano Accountants & Advisors located at 47-46 Vernon Blvd., Second Floor, in Long Island City. For questions, dial 718-707-0955. ARE YOU DOWNSIZING, MOVING OR JUST NEED SOME EXTRA CASH? We specialize in purchasing entire estates or individual pieces of furniture, lighting or art. If you have Mid-Century modern, Art Deco or items from , the 30’s to the 70’s, call all us for a free appraisal and us a iate paym immediate payment. ment. the ca immed Family owned business. We are insured and bonded.
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