In an effort to continue putting New York families first and fund important priorities, Assembly Speaker Carl Heastie and Ways and Means Chair Herman D. Farrell announced a progressive tax proposal this week that includes new tax brackets for New York’s highest earners to address income inequality and ensure funding for critical services.
"This tax plan proposal makes sense in an economy where we are seeing an increasing disparity between the state's top earners whose wealth continues to climb and the majority of hard-working middle class families in the state who are finding it increasingly challenging to balance their income and the cost of necessities," Assemblywoman Jenne said.
"We cannot ignore the income inequality in today's economy. The extension of the millionaire's tax will provide the state with the funds necessary so our rural schools can continue to offer their students a quality education, provide the monies necessary to insure Northern New York residents have access to health care and offer financial assistance to make college more affordable," she added.
Assembly Speaker Heastie pointed out state lawmakers raised the minimum wage for millions of New Yorkers last year and lowered personal income tax rates for middle-class families.
When the tax code expires after 2017, all taxpayers earning over $300,000 would be taxed at a rate of 6.85 percent. The new proposal reestablishes the surcharge on higher income earners and includes the following brackets:
Income
|
Rate
|
$1 million - $5 million
|
8.82%
|
$5 million - $10 million
|
9.32%
|
$10 million - $100 million
|
9.82%
|
Over $100 million
|
10.32%
|
This proposal fiscally compliments New York’s SFY16-17 budget which included a gradual reduction in personal income taxes for middle class earners. When fully phased in, the tax cuts will benefit an estimated 6 million New Yorkers.
Under the new tax structure, the state would generate $5.6 billion in additional revenue than under the current tax law and would affect an estimated 66,134 taxpayers. The new rates would take effect after the tax year ends in 2017.