The Assembly Majority has been fighting for years to establish a more progressive tax code that is fair to middle-class and working families, and this year, we got it done.

This historic law will cut the taxes of New York's working families to the lowest levels in 58 years. The law will provide much-needed tax relief to New York's hardworking families, while helping create jobs and close the state's budget deficit.

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Lower income taxes for 99 percent of New Yorkers

The law includes a tax cut for the middle class that will benefit approximately 4.4 million taxpayers - more than 99 percent of those filing taxes statewide - and results in a tax cut of $690 million for middle-class and working families. Under the plan, tax rates for the middle class and working families are the lowest they have been in 58 years. This tax cut will be paid for by creating a new tax bracket for high-income earners making over $2 million per year - less than 1 percent of all taxpayers.

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.

This tax code reform is a simple matter of fairness. Reforming the tax code to support middle-class families is the right thing to do, and is the best way to stimulate consumer spending and jumpstart the economy. This plan will give relief to the struggling middle class and put New York on the path to fiscal stability.

The law is a victory for middle-class and working families. It delivers an unprecedented level of fairness to the tax code and addresses the months of public debate surrounding the millionaire tax.

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MTA payroll tax cut

The Assembly-backed law permanently eliminates the MTA payroll taxes for qualifying small businesses with annual payrolls of $1.25 million or less per year. Other small businesses will see a considerable decrease in the tax, including those companies with payrolls up to $1.75 million. The law also eliminates MTA payroll taxes for those who are self-employed and earn less than $50,000 per year. In addition, it exempts schools, both public and private, from having to pay the tax - all of which is great news for New York. Easing this financial burden will enable the state to create a more business-friendly climate.

This is a positive step toward a brighter economic future in New York. It will relieve small businesses from this damaging tax and spur hiring so New York families can get back to work. It also renews the Assembly's commitment of working to ensure small businesses have the freedom to innovate and create the good-paying jobs New Yorkers depend on.

To read the details of the law, click here.