by John Darer® CLU ChFC CSSC RSP
A deal reached in the New York State legislature will hike state income taxes by an astounding 31% for all New Yorkers making more than $500,000 a year reports Sunday's New York Post
A second, slightly lower tier would increase state income taxes by 14.5% for singles earning $250,000 to $500,000 annually and for married and joint filers earning $300,000 to $500,000.
Tax increases increase the intrinsic value of non qualified structured settlements as a tool for resolution of employment cases (e.g. wrongful termination, sexual harassment, qui tam), divorce, structured attorney fees and other settlements which where a non qualified assignment may be used.
New York based celebrities, athletes, actors and actresses may have more incentive to structure their endorsement fees.
Other factors which should stimulate use of non qualified assignments are:
- Inevitable federal tax increases
- Proposed end to sliding scale attorney fees in medical malpractice cases in New York, if enacted.