As part of the Assembly Majority's ongoing commitment to uplift New York's working families, Speaker Carl Heastie and Ways and Means Committee Chair Herman D. Farrell, Jr. today announced a multi-pronged tax proposal (A.9179) that would provide much needed tax relief for the middle class and the the state's lowest earning families while generating over $1 billion in yearly revenue.
"The Assembly Majority is committed to doing everything in our power to help New York's families achieve financial independence and success," said Assembly Speaker Carl Heastie. "It is critical that we fight for a fair and progressive tax structure that reflects this commitment and leads us toward a future where working families have more of the income they need to achieve their goals."
The Assembly proposal would revise the state's tax code to apply the current top personal income tax rate to all taxpayers earning $1 million and higher annually, while also raising the tax rate for those earning between $5 million to $10 million and to those earning over $10 million. This measure would generate sufficient revenue for the state to ensure the availability of essential funding to support schools, aging infrastructure and other public priorities.
Under the plan, more than five million middle class earners would see a tax reduction in their personal income tax rate allowing the state's working families to keep more of their income right where they need it most. With a growing number of households struggling to keep up with the rising costs of quality child care, healthcare, college education, let alone save for retirement, tax relief is a critical step to keeping families in the middle class.
For the state's lowest earning workers, the Assembly proposal would increase the Earned Income Tax Credit (EITC) by five percentage points over two years, thereby boosting the average credit for more than 1.6 million New Yorkers. Finally the plan would provide for the permanent extension of recent tax reforms that created the lowest tax rates for middle-income families in decades. Currently, tax rates for filers under $40,000 remain unchanged and the Assembly proposal would impact other income groups as follows:
"We have a duty to ensure that the state's income tax code does not place an unfair burden on those who can least afford it," said Farrell, the sponsor of the bill. "Under this proposal, we can ensure that the lowest earning workers are supported in their efforts to reach the middle class and that every working family can have a meaningful chance at financial stability and success."