NYS budget: What's in it for you?

If you are feeling relieved that state lawmakers finally got around to passing a new budget, you may want to consider what is really in that final piece of the puzzle. Even though lawmakers avoided the distinction of passing the latest state budget ever, they did pass a plan that will raise roughly $1 billion in part by increasing taxes on the sale of clothing, and more.

Here are some of the highlights of the new state budget:

*The final budget ends the current tax-free sales on clothing and shoes valued under $110 dollars. This means shopping will cost more and it could raise an extra $330 million for the state.

*The state will increase its share of revenue from video gambling machines and will allow a number of to stay open longer.

*Lawmakers voted to reduce charitable deductions for those who make $10 million or more.

*Lawmakers rejected a plan to enact a tax change on earnings by hedge fund managers who work in New York but live outside the state. Much of their compensation comes in performance incentives that are considered capital gains and are taxed federally at a rate of 15%. The change would have made these earnings "ordinary" income, subject to state tax rates.

Some of the information in this report came from