Work from E.J. McMahon

NYC’s high-income tax habit by E.J. McMahon |  | NY Torch

The highest earning one percent of New York City residents generated 43 percent of city income taxes and 51 percent of the New York State income taxes collected from individuals  living in the city as of 2016, according to newly released data from the Independent Budget Office (IBO).

The IBO's latest tax liability estimates highlight once again New York's heavy dependence on the top 1 percent, for which the income cut point as of 2016 was $713,706. [Read_more]

Soaking the rich—or not by E.J. McMahon |  | NY Torch

New York State's so-called millionaire tax, temporarily raising the state's top income tax rate to 8.82 percent from the permanent law limit of 6.85 percent, is next scheduled to expire at the end of 2019. The added tax generates roughly $4.5 billion a year, about 9 percent of net personal income tax revenues, making New York more dependent than ever on the highest-earning one percent of its taxpayers.

The future of the tax has now emerged as an issue in the gubernatorial campaign. [Read_more]

The new Tappan Zee shows the best—and the worst—of Cuomo by E.J. McMahon |  | New York Post

This weekend, just days ahead of a primary that polls say he’ll win handily, Gov. Andrew Cuomo will take the wheel of Franklin D. Roosevelt’s refurbished 1932 Packard for a celebratory drive across the replacement for the old Tappan Zee Bridge. [Read_more]

NY’s leaky gas taxes by E.J. McMahon |  | NY Torch

When motorists in New York top off their gas tanks this Labor Day weekend, they’ll be paying an average of about 45 cents per gallon in state and local fuel taxes—the 5th highest total in the nation, and second highest in the Northeast. [Read_more]

Cuomo’s misleading labor stats by E.J. McMahon |  | NY Torch

When it comes to rhetorical use of upstate New York unemployment statistics, Governor Cuomo is consistent. Unfortunately, he's consistently misleading.

The latest example came at today's ribbon-cutting today for the new 136,000-square-foot Expo Center at the state fairgrounds in Syracuse, where Cuomo delivered a roughly 25-minute stream-of-consciousness riff that focused on what he portrayed as an economic turnaround in upstate and the Syracuse area. [Read_more]

Albany’s OPEB iceberg gets bigger by E.J. McMahon |  | NY Torch

New York's unfunded liability for state government retiree health coverage has reached $90.5 billion—an increase of $3 billion over last year's estimate, and nearly $13 billion in just two years, according to the just-released First Quarterly Update to the state's FY 2019 Financial Plan.

The liability for other post-employment benefits, or OPEB, reflects the net present value of continuing state health insurance coverage available to all employees who retire directly from a state government payroll after at least 10 years of service. [Read_more]

Here comes federal “Tax Reform 2.0” by E.J. McMahon |  | NY Torch

Congressional Republicans today unveiled a summary of their plans for permanently extending last year's federal income tax cuts—presumably (but not explicitly) subsidized by a permanent $10,000 cap on state and local tax (SALT) deductions. [Read_more]

More on that flaky SALT suit by E.J. McMahon |  | NY Torch

The New York-led multi-state lawsuit challenging the new federal tax law is not as weak as you might have heard.

If anything, it's even worse—a 141-page mashup of half-baked numbers, dubious factual assertions and (largely well-founded) political arguments masquerading as constitutional jurisprudence. [Read_more]

A SALT cap surprise (so far) by E.J. McMahon |  | NY Torch

The newly enacted federal income law provision limiting state and local tax (SALT) deductions "is likely to substantially decrease home values" in New York, Connecticut, Maryland and New Jersey.

That's a key claim of the lawsuit filed by the four states against the Trump administration today with the goal of having the $10,000 SALT deduction cap declared unconstitutional. [Read_more]

Cuomo’s Buffalo Billion was beyond corrupt by E.J. McMahon |  | New York Post

The overarching scandal here wasn’t bid-rigging or the pay-to-play pattern in the developers’ contributions to the governor’s reelection campaign. At the root was a simply awful public policy — corporate welfare on steroids — that neither Cuomo nor most of his critics have definitively renounced, even now. [Read_more]

Cuomo’s upstate hype continues by E.J. McMahon |  | NY Torch

Governor Cuomo frequently asserts that his policies have ignited an economic turnaround in upstate New York, and he's been known to cherry-pick numbers to back himself up. He was at it again during a swing through the Mohawk Valley earlier this week—and, once again, the statistical cherries were in bloom. [Read_more]

Marc Molinaro’s tax-cut challenge by E.J. McMahon |  | New York Post

Molinaro’s rhetoric made it all sound obvious — and easy. In fact, New York faces real financial constraints that’ll limit options for whoever occupies the governor’s office starting next January. [Read_more]

Northport’s cash cow is Long Island’s burden by E.J. McMahon |  | Newsday

Among New York school districts with enrollments of 4,000 or more, the list of highest property taxes per pupil is what you’d expect — topped by Great Neck, Scarsdale, Syosset and Bedford.

In fifth place is a somewhat less wealthy outlier: the Northport-East Northport district. It will raise $28,556 per pupil in property taxes next year, based on data from the state’s 2018-19 Property Tax Report Card. That’s 57 percent above the Suffolk County average. [Read_more]

NY’s regional job divide continues by E.J. McMahon |  | NY Torch

Year-over-year private-sector job growth in New York continued along a familiar path last month—stronger downstate than upstate, and somewhat weaker overall than the national average. [Read_more]

Another SALT work-around emerges by E.J. McMahon |  | NY Torch

After months of behind-the-scenes work, the state Department of Taxation and Finance is circulating a "discussion draft" of proposed bill language creating a new form of state tax designed to preserve some federal income tax deductibility for state and local taxes (SALT) paid by partners in unincorporated firms. [Read_more]

Bigger future gaps in new NY budget by E.J. McMahon |  | NY Torch

New York's newly enacted state budget for the fiscal year that started April 1 is balanced with higher-than-anticipated tax receipts, but out-year projected budget gaps have grown significantly larger, according to quarterly financial plan update issued late Friday afternoon by Governor Cuomo's Division of the Budget (DOB).

[Read_more]

Nashville’s gain, NY’s loss by E.J. McMahon |  | NY Torch

High-tax New York has just lost one of its oldest money-management firms to low-tax Nashville, Tennessee—highlighting an ongoing shift of Wall Street jobs, and of high earners in general. [Read_more]

Exploring NY’s top-heavy PIT base (2018 update) by E.J. McMahon |  | Reports

Nearly two-thirds of New York State’s tax receipts are now generated by the personal income tax, or PIT. As a result, the state is very heavily reliant on highest-earning 1 percent of New York taxpayers—whose effective income tax rates have increased sharply under the new federal tax law capping state and local tax (SALT) deductions. [Read_more]

Cuomo’s dug New York into a giant tax trap by E.J. McMahon |  | New York Post

Cuomo has further boosted the state’s already heavy reliance on taxes paid by income millionaires. This has made Albany’s revenue base more fragile and volatile — a problem aggravated by the new federal cap on state and local tax deductions, which effectively raises total tax rates for New York’s highest earners. [Read_more]

Looking ahead to next year’s Tax Day by E.J. McMahon |  | NY Torch

The interactive map on this page depicts how the federal Tax Cuts and Jobs Act (TCJA) will affect New Yorkers in two different adjusted gross income (AGI) ranges: $75,000 to $100,000, and $100,000 to $200,000. [Read_more]

NY’s unsavory new budget by E.J. McMahon |  | NY Torch

Last week's New York state budget approval process was even more rushed, secretive, confused and sloppy than usual—stretching through Good Friday and the first night of Passover into the predawn hours of Saturday, March 31—all in the name of meeting an ultimately inconsequential April 1 "deadline" for the start of the new fiscal year. [Read_more]

Still more capital pork in budget by E.J. McMahon |  | NY Torch

New York's Legislature and Governor Andrew Cuomo are shoveling yet another $475 million into the biggest, murkiest, pork-barrel slush fund Albany (and perhaps any state capital) has ever seen. [Read_more]

Schumer taps his own state by E.J. McMahon |  | NY Torch

Led by New York's Charles Schumer, U.S. Senate Democrats just unveiled a "Jobs and Infrastructure Plan" that would be financed disproportionately by Empire State taxpayers.

To cover the 10-year, $1 trillion price-tag of their package, Senate Democrats would reverse several provisions of the newly enacted federal tax changes—including reductions in the top income tax rate and in the Alternative Minimum Tax (AMT). [Read_more]

The shape of watered-down SALT by E.J. McMahon |  | NY Torch

The Cuomo administration has released a few more details of its plan to propose an optional payroll tax for New York employers as a way to preserve some of the state and local tax (SALT) deductions capped under the federal Tax Cuts and Jobs Act. [Read_more]
1 2 39