In an effort to continue putting New York families first and fund important priorities, Assembly Speaker Carl Heastie and Ways and Means Chair Herman D. Farrell today announced a progressive tax proposal that includes new tax brackets for New York's highest earners to address income inequality and ensure funding for critical services.
"Raising the minimum wage last year and lowering the personal income tax rates for the middle class were essential first steps to addressing the income inequality our state is facing," said Speaker Heastie. "By ensuring that tax rates are tailored to expect more from those who can most afford it, we can make sure our communities have better schools, New Yorkers have better access to healthcare and that tax burdens do not crush those who are struggling to make ends meet."
"We are proposing a fiscally and socially responsible tax policy that helps millions of New Yorkers facing the consequences of income inequality," said Assemblymember Farrell. "We must continue to help New Yorkers climb the ladder of economic opportunity, and that means fair tax rates to make investments in important public services."
When the tax code expires after 2017, all taxpayers earning over $300,000 would be taxed at a rate of 6.85 percent. The new proposal maintains the current rate structure for those earning below $1 million, and reestablishes the higher surcharge on millionaires and multi-millionaires. It includes the following brackets:
|$1 million - $5 million||8.82%|
|$5 million - $10 million||9.32%|
|$10 million - $100 million||9.82%|
|Over $100 million||10.32%|
This proposal fiscally compliments New York's SFY16-17 budget which included a gradual reduction in personal income taxes for middle class earners. When fully phased in, the tax cuts will benefit an estimated six million New Yorkers.
Under the new tax structure, the state would generate $5.6 billion in additional revenue than under the current tax law and would affect an estimated 66,134 taxpayers. The new rates would take effect after the tax year ends in 2017.