Marcy 28, 2013

Fair and Equitable Tax Code Extended in
2013-2014 New York State Budget
$24 Million Inner-City Youth Employment Tax Credit Renewed

As part of the Assembly Majority's ongoing commitment to assist New York's working families, Speaker Sheldon Silver and Ways and Means Committee Chair Herman D. Farrell, Jr. announced the three-year extension of the fair tax reform plan which will generate $2 billion in revenue. The SFY 2013-2014 Budget will also preserve tax-relief measures for middle-income families. The plan was first implemented in 2012 to restore equity and fairness to the personal income tax code, the first major restructuring of the tax code in decades. This funding is an essential component of the state budget agreement which limits the spending plan to two percent growth and closes a $1.3 billion deficit.

The tax code provides $690 million in tax relief to more than 4.4 million middle class New York taxpayers annually.

"The Assembly Majority fought tirelessly on behalf of New York's struggling working families to restore equity to our income tax code. I continue to believe that someone earning $50,000 a year should not be paying the same tax rate as someone earning $5 million. The extension of this progressive tax structure is important to our continuing efforts to rebuild New York's economy," said Silver.

The 2012 reform resulted in the lowest tax rate for middle-income families in nearly 60 years. It was originally scheduled to expire on December 31, 2014.

Income Level
$40,000 to $150,000
$150,000 to $300,000
$300,000 to $2 million
Over $2 million
Tax Rate

The SFY 2013-2014 Budget will also renew the inner-city youth employment program, a $24 million tax credit over four years for employers who hire unemployed youth 16 to 24 years of age who reside in a city of more than 55,000 or a town of 480,000.

"We must commit resources to bolster New York's economy and put people back to work," said Farrell. "The youth employment program will promote economic growth and job creation in the areas of our state that continue to struggle."

The program and credit would be available to employers in the clean energy, healthcare, advanced manufacturing and conservation industries. Eligible employers would receive up to $4,000 if they retain the workers for an entire year. The program would be extended through 2017.