Assemblyman Steven Cymbrowitz called the progressive tax code reforms passed by the Assembly and Senate last Wednesday a money saver for most New Yorkers; ensuring that “millionaires and billionaires pay their fair share.”
The landmark bill (A.4002) marks the first restructuring of the State’s tax code in decades, and the result is “a victory for the middle-class and working families,” Cymbrowitz explained. “By shifting a piece of the tax burden to those who can most afford to pay it, we were able to cut taxes for the majority of New York’s residents. Middle-class families will now have more to spend on goods and services, which will be good for jobs, as well as economic growth in New York State.”
“The new high-income tax bracket for households earning more than $2 million per year will raise nearly $6 billion in revenue over the next three years, which will be used to restore crucial funding for schools and healthcare, create jobs and pay down the budget deficit,” Cymbrowitz stated. “The agreement benefits middle-class taxpayers by cutting income tax rates and indexing the standard state tax deduction to inflation, resulting in an additional gain for taxpayers each year.”
Along with the tax cuts for middle-class and working families, the new tax bracket for top earners will help the State’s bottom line by raising $2 billion every year for the next three years to close the budget gap and fund job-creating initiatives such as infrastructure projects, a jobs program for inner-city youths and grant money for victims of natural disasters.
In an effort to provide relief for small businesses, the Assembly passed legislation permanently eliminating payroll taxes for qualifying small businesses with annual payrolls of $1.25 million or less per year. Other small businesses will see a significant decrease in their payroll taxes as well. The Assembly’s legislation eliminates MTA payroll taxes for those self-employed earning less than $50,000 per year. In addition, it exempts schools – yeshivas, parochial, public – and non-profit organizations with payrolls under $1.25 million from having to pay the tax. Subway and bus service will not suffer because the monies lost due to the exemptions will be made up by allocations from the State’s general fund.
The Assembly also provided $61 million for job programs, including the Summer Youth Employment Program, Higher Education Opportunity Program, Career Pathways, Advanced Technology Training and Information Networking, the Displaced Homeowner Program, Childcare Facilitated Enrollment Demonstration programs, the Center for Employment Opportunities, and Youth Employment Readiness Training Program.
“Together we advanced a plan that will spur job creation, make our tax code fairer, and give the state budget a sound foundation on which to build. It is a positive step toward a brighter economic future in our community and I will keep working to ensure that we continue along the right path.