Millionaire New Yorkers are now set to pay the highest taxes in the country

wealthy new yorkers
The wealthiest New Yorkers might see their tax rates increase to the highest in the country.

New York City millionaires will soon be subject to the highest tax rate in the country.

Gov. Andrew Cuomo and state legislative leaders finalized a $212 billion budget proposal for 2022 on Tuesday that’s set to raise an extra $4.3 billion a year by raising income and corporate taxes, The New York Times’ Luis Ferré-Sadurní and Jesse McKinley reported. The proposal calls for two new personal income-tax brackets, set to expire by the end of 2027, per exclusive details given to the Times earlier this week.

Those earning between $5 million and $25 million will be taxed on 10.3% of their income. That increases to 10.9% for those earning more than $25 million. And individuals raking in over $1 million and couples bringing in over $2 million will see tax rates climb from 8.82% to 9.65%.

These tax rates hit especially hard for New York City’s highest earners. The city already has a top income-tax rate of 3.88%, which means they’ll now be shelling out between 13.5% and 14.8% in both state and city taxes. That exceeds the highest top marginal income tax rate in the country: 13.3% for top earners in California.

However, they may not be the highest taxed for long if Hawaii’s legislature passes a bill imposing a 16% tax on residents earning over $200,000.

New York is dealing with economic pain

Cuomo said in January he planned on raising taxes if the White House didn’t help the state recover from its $15 billion deficit, Insider’s Grace Dean reported. It’s the highest deficit in New York’s history, exceeding the previous high of $10 billion, which Cuomo said was “very, very hard” to manage.

In an address, Cuomo attributed New York’s deficit to the state being “assaulted by the federal government” in recent years as well as to the cost of COVID-19, which caused the state’s revenues to fall by $5.1 billion.

As the epicenter of the US’ first wave of COVID-19, New York City was slammed with small-business closures and saw many of its top-earning residents move to take advantage of lower taxes in other states. Urbanism expert Richard Florida told Insider the flight of the wealthy caused a lot of financial pain for superstar cities like New York.

Cuomo called for the federal government to provide New York with emergency pandemic relief. He said that if Washington gave the state only $6 billion in a “worst-case scenario,” he would hike taxes to cover the difference.

“We have a plan in place, a strength that we have not had before and I believe our future is bright, but Washington must act fairly if we are to emerge on the other side of this crisis,” he said.

While Democrats considered raising more than $7 billion in new revenue for the state, The Times reported, such discussions fell to the side when President Joe Biden’s $1.9 trillion stimulus package was approved, which included $12.9 billion in direct aid for New York state. It also included $5.6 billion for New York City, which Insider’s Juliana Kaplan reported might have saved catastrophic cuts to the city budget.

Cuomo has resisted raising taxes for years out of fear it would drive businesses and the wealthy to other states. If all of the wealthiest New Yorkers fled the city, they could take more than $133 billion with them. That’s how much the top 1% of New Yorkers earned in income in 2018, a report from Bloomberg found.

The Times attributed Cuomo’s change of mind to the economic fallout of the pandemic, a growing progressive influence in the legislature, and the governor’s own “waning influence.”

The budget proposal is finalized as Biden reportedly gets even more serious about taxing the wealthy. He’s said that Americans making over $400,000 will see a “small to significant” tax increase and high-earning Americans could see their top income-tax rate increase to 39%.

If Biden’s tax proposal is enacted now that Cuomo’s has been, that means some of the richest New York City dwellers could be paying out more than half of their earnings in taxes.

Read the original article on Business Insider

Millionaire New Yorkers could soon be paying the highest taxes in the country

wealthy new yorkers
The wealthiest New Yorkers might see their tax rates increase to the highest in the country.

New York City millionaires are about to fall under the highest tax rate in the country.

Gov. Andrew Cuomo and state legislative leaders are coming close to agreeing on a 2022 budget proposal that would create an extra $4.3 billion a year by raising income and corporate taxes, The New York Times’ Luis Ferré-Sadurní and Jesse McKinley reported. The proposal calls for two new personal income tax brackets set to expire by the end of 2027, per exclusive details given to the Times.

Those earning between $5 million and $25 million would be taxed on 10.3% of their income. That increases to 10.9% for those earning over $25 million. And individuals raking in over $1 million and couples bringing in over $2 million would see tax rates climb from 8.82% to 9.65%.

These tax rates hit especially hard for New York City’s highest earners. The city already has a top income tax rate of 3.88%. If the budget proposal is approved, they would be shelling out between 13.5% and 14.8% in both state and city taxes, per the Times. That exceeds the country’s current marginal income tax rate high: 13.3% for top earners in California.

New York is dealing with economic pain

Cuomo said in January he planned on raising taxes if the White House didn’t help the state recover from its $15 billion deficit, Insider’s Grace Dean reported. It’s the highest deficit in New York’s history, she wrote. The state’s biggest deficit prior to this was $10 billion, which Cuomo said was “very very hard” to manage.

In an address, Cuomo attributed New York’s deficit to the state being “assaulted by the federal government” over recent years as well as to the cost of COVID-19, which caused the state’s revenues to fall by $5.1 billion.

As the epicenter of the US’ first wave of COVID-19, New York City was slammed with small business closures and saw many of its top-earning residents move to take advantage of taxes in other states. Urbanism expert Richard Florida told Insider the flight of the wealthy caused a lot of financial pain for superstar cities like New York.

Cuomo called for the federal government to provide New York with emergency pandemic relief. He said that if Washington only gave the state $6 billion in a “worst-case scenario,” he would hike taxes to cover the difference.

“We have a plan in place, a strength that we have not had before and I believe our future is bright, but Washington must act fairly if we are to emerge on the other side of this crisis,” he said.

While Democrats considered raising more than $7 billion in new revenue for the state, the Times reported, such discussions fell to the side when President Joe Biden’s $1.9 trillion stimulus package was approved, which included $12.9 billion in direct aid for New York state. It also included $5.6 billion for New York City, which Insider’s Juliana Kaplan reported may have saved catastrophic cuts to the city budget.

Cuomo has resisted raising taxes for years out of fear it would drive businesses and the wealthy to other states. If all of the wealthiest New Yorkers fled the city, they could take more than $133 billion with them. That’s how much the top 1% of New Yorkers earned in income in 2018, a report from Bloomberg found.

The Times attributed Cuomo’s change of mind to the economic fallout of the pandemic, a growing progressive influence in the legislature, and the governor’s own “waning influence.”

The budget proposal is due to be finalized as Biden reportedly gets even more serious about taxing the wealthy. He’s said that Americans making over $400,000 will see a “small to significant” tax increase and high-earning Americans could see their top income-tax rate increase to 39%.

If both Biden and Cuomo’s tax proposals are enacted, that means the richest New York City dwellers could be paying out more than half of their earnings in taxes.

Read the original article on Business Insider

New York City home-buying has begun to rebound after a year of exodus during the COVID-19 pandemic

manhattan new york
Alexander Spatari/Getty Images

  • People are moving back to Manhattan and taking advantage of lower prices in the process.
  • Manhattan home-buying increased 2.1% in the first quarter this year from the same time last year.
  • Prices remain lower than before the pandemic, new data show.
  • See more stories on Insider’s business page.

People are buying up real estate in Manhattan once again after leaving en masse amid the COVID-19 pandemic that hit the city hard.

For the first time since the beginning of 2020, the number of sales topped the year-ago total, according to a report by Douglas Elliman Real Estate brokerage that was first covered by Bloomberg.

Apartment sales in the borough increased 2.1% in the first three months this year as compared to the same time last year when the pandemic struck the city, the report said.

The rebound in March alone was the strongest since 2007, as about 1,500 homes in Manhattan were under contract for sale, according to a report from The Wall Street Journal that cited real-estate analytics firm UrbanDigs.

Buyers are taking advantage of the lower prices, too, with most of those sales closing at or below the asking price. The median rate was $780,000, which was a 3.8% drop from the same quarter a year ago, the Douglas Elliman report said.

Read more: Brooklyn is winning the pandemic. Eager homebuyers are propelling a real-estate surge as Manhattan lags far behind.

The west and east side of Manhattan, as well as downtown, had the strongest sales compared with last year, as upper Manhattan and Midtown had fewer deals, the WSJ said.

Six months into the pandemic, real-estate experts had estimated lower prices and higher vacancies could be the new normal for the city, even if it wasn’t as drastic as during 2020.

With businesses allowing employees to work from home during the pandemic, many people were able to move to outer boroughs for more space and lower prices. Brooklyn proved resilient amid the pandemic, as its sales began bouncing back in the last three months of 2020.

Many others during the pandemic fled to the suburbs, and might stay as companies begin to offer long-term work-from-home options.

Read the original article on Business Insider

You can rent Lady Gaga’s former Manhattan apartment for $2,000 a month

Lady Gaga house NYC
Lady Gaga’s former apartment is on the rental market.

An apartment that Lady Gaga used to live in has hit the rental market.

The Manhattan apartment, in the heart of Lower East Side, costs $2,000 a month.

Lady Gaga house
The kitchen has a skylight.

The modest property has three rooms in total: a bedroom, a bathroom, and an open kitchen. It’s located in a “well-maintained” 18-unit Stanton Street apartment block, which was built in 1900, according to Alex Livshiz, who is managing the listing for Compass.

The property is flooded with natural light from its kitchen skylight and north and west-facing windows, and has 10-foot ceilings throughout.

Lady Gaga house
The main room is an open kitchen with ample space for dining or relaxing.

Livshiz described the property’s condition as “excellent.”

Gaga stayed in the property while writing her 2008 debut album “The Fame,” The New York Post reported. She allegedly paid just $1,100 a month in rent while living there.

Her homes since have cost her much more. She currently lives in a $22.5 million Malibu mansion she bought in 2014, complete with a two-lane bowling alley, a massive wine cellar, and a beautiful view of the Pacific – and spent a further $$60,000 on Koi fish imported from Japan for the gardens. She also dropped $5.25 million on Frank Zappa’s former Hollywood Hills abode in 2016.

Lady Gaga house
French doors connect the bedroom to the kitchen.

Gaga fans are keen to buy her former possessions or merchandise associated with the star. A red 1986 Alfa Romeo Spider Graduate formerly owned by Gaga was auctioned off for more than $14,000 in February. As well as her makeup line, in January she also started selling a limited-edition Oreo cookie to accompany the launch of her “Chromatica” album.

Fans can also dine at the New York City restaurant, “Joanne Trattoria,” which she set up with her father in 2012.

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Jeffrey Epstein’s New York home is about to sell for $50 million, more than $40 million under asking price

epstein new york townhouse interior

Jeffrey Epstein’s New York City townhouse is under contract to sell for $50 million, The Wall Street Journal reported. The deal would be one of the most expensive in New York over the last year.

Jeffrey Epstein’s lavish New York townhouse and Palm Beach residence hit the market for a combined $110 million in July. The New York home was originally listed for $88 million, while the Palm Beach house sold in December for $18 million, $4 million under the asking price. The Palm Beach estate is set to be demolished.

The proceeds from the sales will go to Epstein’s estate, which has established a victim’s fund for the women accusing Epstein of sexually abusing them when they were minors.

jeffrey epstein new york townhouse 2

Epstein was accused of luring young girls and then sexually abusing them at both properties.  Last July, investigators said they found “hundreds” of nude photos of girls, some of whom appeared to be underage, at his New York townhouse. And in 2018, the Miami Herald reported that dozens of girls were routinely abused in his Palm Beach mansion. 

In June, a compensation fund, bankrolled by Epstein’s multi-million dollar estate, opened for victims of Epstein’s abuse. Victims can apply for these funds outside of court and there is no cap on claims. 

Epstein’s Upper East Side property is one of the largest private homes in the city, with 7 stories and 28,000 feet, according to Modlin Group, which is brokering the deal.  It’s more than twice the width of a standard row home.

jeffrey epstein new york townhouse 3

 “It’s definitely a trophy property,” said Kyle Egan, a New York-based real-estate agent not involved in the sale. “Does it have a recent, very negative past? Totally. But I don’t think that will give buyers pause. A property like this comes up so infrequently.”

Epstein’s estate has been valued at more than $600 million, and also features a private island in the US Virgin Islands, and properties in New Mexico and Paris.

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New York prosecutors subpoenaed a property tax agency as part of a criminal investigation into Trump’s business dealings

trump impeached
  • Officials are investigating if Donald Trump manipulated the value of his assets for loan and tax benefits.
  • The Manhattan DA’s office subpoenaed a property tax agency as part of the criminal investigation.
  • It is just one of many legal challenges facing Trump since he left office last month.
  • Visit the Business section of Insider for more stories.

The Manhattan District Attorney’s office subpoenaed a property tax agency as part of a criminal investigation into former President Donald Trump’s business dealings, Reuters reported on Friday.

The New York City Tax Commission confirmed that they received the subpoena, which could likely result in detailed income and expense statements from the Trump Organization being turned over to the DA’s office.

District Attorney Cyrus Vance Jr. has been conducting an ongoing investigation into Trump’s company over whether it has been inflating his property values to reduce taxes.

Last year, The New York Times reported that Trump had valued properties at significantly different amounts at different times.

For instance, his Seven Springs estate, located north of New York City, was purchased in 1995 for $7.5 million. When trying to get a loan in 2014, Trump’s company valued it at $291 million. On an ethics disclosure form in 2019, it was listed at $50 million.

Manhattan prosecutors previously subpoenaed Deutsche Bank, Trump’s primary lender for decades, seeking documents that could point to potential fraud.

They also interviewed Michael Cohen, Trump’s former lawyer, on Thursday as part of the investigation, Reuters reported.

A separate investigation is also being conducted by a New York state official, Attorney General Letitia James. James is also examining Trump’s company, as well as his personal finances, as part of an ongoing civil investigation into whether the former president manipulated the value of his assets for loan and tax purposes.

While there is overlap in what the two investigations are looking at, they are being conducted independently.

They are also just a fraction of the legal woes facing Trump now that he has left office, Insider’s Dave Levinthal has reported.

Have a news tip? Contact this reporter at kvlamis@insider.com.

Read the original article on Business Insider