Governor Cuomo Passes New York Tax Bill That Favors Middle Class

While there is a national debate over whether to extend tax breaks for the middle class and make millionaires pay more, New York Governor Andrew Cuomo has passed a similar measure in his state.

The tax will mark the second tax increase for New York residents in two years. The new tax reduces rates for families making $40,000 to $300,000 and single filers making $20,000 to $150,000 a year.

Taxes for households making $2 million and single filers making $1 million a year will increase from 6.85 percent to 8.82 percent starting June of 2012. Wealthy citizens, who are concerned about the impact this may have on them, can consult with a tax attorney.

He faced some opposition, but the bill was passed by an overwhelming majority in the Republican-controlled House.

In a statement, Cuomo said, “This was a function of an economic reality and deteriorating economic conditions.” He believes the change in tax rates will stimulate jobs and construction throughout the state.

This is a similar tax increase to the one being proposed on a national level. Businesses and individuals making more than a million dollars a year have a number of options available to reduce their overall tax payouts which can be outlined by a tax lawyer.

A tax attorney can show people ways to save on taxes either through changing their business structure or investing back into their businesses.