Assemblywoman Jacobs: Assembly Rejects Tax Cuts for Millionaires

Proposal directs portion of proceeds to education
March 15, 2011
Assemblywoman Rhoda Jacobs (D-Flatbush) helped pass an Assembly budget that rejects the executive budget proposal to cut taxes for the state’s wealthiest.

“With a $10 billion deficit and scores of painful cuts on the table, including sizeable reductions in critical education and health care programs, now is not the time to give millionaires a tax break,” Assemblywoman Jacobs said. “That’s why I helped pass an Assembly budget that doesn’t favor the state’s privileged few – less than half a percent of the resident population – over working families.”

Under the executive budget, millionaire tax rates would drop from 8.97 percent to 6.85 percent, the same rate paid by New Yorkers making $20,000 a year. Instead, the Assembly’s budget maintains the current rate and directs 30 percent of the revenue – a projected 30 percent of $706 million in 2011-12, and of $2.65 billion in 2012-13 – to the Educational Assistance Fund, with the balance going toward cash-starved programs and services.

“We need all New Yorkers – not just the middle-class and lower-income families – to bear the burden of our state’s fiscal crisis,” Jacobs said. “If we give millionaires special treatment, schools, hospitals and other vital programs and services stand to suffer crippling cuts.”

The executive budget proposal comes after the recent renewal of the Bush-era tax cuts for America’s richest, which took effect in January. Estimates show that the average annual federal tax cut for those making over $1 million is $128,832.

“To provide millionaires yet another tax break on the heels of their federal tax cut is not only grossly unfair, it’s fiscally unsound,” said Jacobs. “We’re accepting a lot of pain in this budget, but we just couldn’t accept what boils down to a multi-billion dollar handout to millionaires.”