There's nothing like a "temporary tax"… the New York edition

By: Richard S. Davis
12:00 am
March 20, 2013

Or so it would seem. Literally. As the governor and some legislators in Olympia consider extending temporary tax increases on business and beer, their counterparts in New York tread the same turf.

Gov. Andrew M. Cuomo and legislative leaders are finalizing a surprise deal to extend a high-tax bracket for the state’s top incomes. The bracket, first approved by lawmakers in late 2011 as a temporary response to disappointing revenues, does not expire until the end of 2014. But that year is an election year, and by deciding to renew the bracket now, Mr. Cuomo and lawmakers can avoid debating high tax rates while running for re-election.

The NYT story adds this.

The extension of the tax bracket was the most surprising change to come out of this year’s budget negotiations, which Mr. Cuomo and legislative leaders were close to wrapping up on Tuesday.

Surprising? Really? Maybe only in its timing, because delaying the sunset of temporary tax hikes is always the easiest move. And that’s why people become more than a little skeptical when they’re promised it will only hurt for a little while.

Categories: Budget , Categories , Current Affairs , Tax Policy.