BALCONY HAILS NEW YORK STATE LEADERS’ EFFORT TO CLOSE HUGE BUDGET GAP: CONCERN OVER LAYOFFS OF 8700 STATE WORKERS

The Business and Labor Coalition of New York, BALCONY, gave its qualified support for the newly-enacted New York State 2009-2010 budget, one that includes a 1% hike in the tax rate on individual incomes over $200,000 and family/joint filers over $300,000, and a hike of slightly more than 2% on incomes over $500,000. These rate increases have been enacted for the next three years, meaning that they will expire around the time that the federal stimulus monies cease.

New York State expects this surcharge to bring in over $4 billion for the state’s coffers each year. Given the steady drift away from a progressive tax code during the mid- and late-1990s, adding two new brackets to the top of the state’s tax structure made a lot of sense. Also, since New York has lost 200,000 jobs already in this recession, the high-end income tax increase was vital in averting even more damaging state spending cuts that would have exacerbated the recession’s effects and deprived deserving New Yorkers of essential public services.

We are not out of the budget woods yet, however, BALCONY is concerned that working families will suffer further if the Paterson Administration lays off 8,700 state employees including members of CSEA and PEF.

Continue reading the BALCONY Budget Report:  Report

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