A05912 Summary:

BILL NOA05912
 
SAME ASSAME AS S02021
 
SPONSORTowns (MS)
 
COSPNSRKavanagh, John, Jeffries, Heastie, Espaillat, Koon, Pheffer, Lancman, Millman, O'Donnell, Rosenthal, Nolan, Perry, Dinowitz, Gottfried, Clark, Rivera N
 
MLTSPNSRBarron, Brook-Krasny, Camara, Colton, Glick, Lifton, Lopez V, Lupardo, Meng, Peralta, Powell, Pretlow, Ramos, Rivera P, Titus
 
Amd S601, Tax L
 
Enacts the "fair share tax reform act of 2009".
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A05912 Actions:

BILL NOA05912
 
02/23/2009referred to ways and means
01/06/2010referred to ways and means
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A05912 Floor Votes:

There are no votes for this bill in this legislative session.
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A05912 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5912
 
                               2009-2010 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 23, 2009
                                       ___________
 
        Introduced by M. of A. TOWNS, GREENE, KAVANAGH, JOHN, JEFFRIES, HEASTIE,
          ESPAILLAT,  KOON,  PHEFFER, LANCMAN, EDDINGTON, MILLMAN -- Multi-Spon-
          sored by -- M. of A. BARRON, BROOK-KRASNY, CAMARA,  COLTON,  DINOWITZ,
          LIFTON, LUPARDO, PERALTA, POWELL, RAMOS, P. RIVERA, TITUS -- read once
          and referred to the Committee on Ways and Means
 

        AN ACT to amend the tax law, in relation to enacting the "fair share tax
          reform act of 2009"
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1.  Legislative Intent. The legislature hereby finds  that  at
     2  no  time since the great depression has the need to enact fair and equi-
     3  table reform to the state's tax system been greater. Over  the  last  30
     4  years, New York state's personal income tax laws have become increasing-
     5  ly  unfair and inequitable. Personal income tax rates for the wealthiest
     6  New Yorkers have been reduced by more than 50%,  and  upper  income  tax
     7  brackets  have been eliminated, substantially reducing the burden on New
     8  Yorkers earning over $250,000 per year. New York state  now  requires  a
     9  family  struggling  to  get  by on just over $40,000 of taxable income a

    10  year to pay the same marginal tax rate as a family fortunate  enough  to
    11  make $4,000,000 a year.
    12    While  personal  income tax rates have been cut, New York has increas-
    13  ingly relied on other, more regressive, state and local fees and  taxes,
    14  including  sales  and  property taxes. As we seek to address an historic
    15  fiscal crisis, New York's poor and  working  families  are  again  being
    16  asked  to  pay  higher  fees  and  higher taxes, while they endure major
    17  cutbacks in education, health and public protection services.
    18    The legislature therefore finds that the Empire State now has  one  of
    19  the  most  regressive  tax  systems  in the United States, with poor and
    20  middle income families paying a far higher portion of  their  income  in
    21  state and local taxes than the wealthiest New Yorkers.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets

                              [ ] is old law to be omitted.
                                                                   LBD04364-06-9

        A. 5912                             2
 
     1    Accordingly,  the  legislature  hereby  finds  and declares that it is
     2  imperative that we reform the state's  personal  income  tax  system  to
     3  restore  progressivity  and  fairness.  In  order to insure that all New
     4  Yorkers do their fair share as we  implement  policies  to  address  our
     5  state's fiscal crisis, the legislature hereby enacts the "fair share tax
     6  reform act of 2009".
     7    §  2.   Paragraphs 2, 3, 4, 5, 6, 7 and 8 of subsection (a) of section
     8  601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8 and 9.
     9    § 3. Paragraph 1 of subsection (a) of section 601 of the tax  law,  as

    10  amended  by  section  1 of part Y3 of chapter 62 of the laws of 2003, is
    11  amended to read as follows:
    12    (1) For taxable years beginning after two thousand eight:
 
    13  If the New York taxable income is:    The tax is:
    14  Not over $16,000                      4% of the New York taxable
    15                                        income
    16  Over $16,000 but not over $22,000     $640 plus 4.5% of excess over
    17                                        $16,000
    18  Over $22,000 but not over $26,000     $910 plus 5.25% of excess over
    19                                        $22,000
    20  Over $26,000 but not over $40,000     $1,120 plus 5.9% of excess over
    21                                        $26,000

    22  Over $40,000 but not over $250,000    $1,946 plus 6.85% of excess over
    23                                        $40,000
    24  Over $250,000 but not over $500,000   $16,331 plus 8.25% of excess over
    25                                        $250,000
    26  Over $500,000 but not over $1,000,000 $36,956 plus 8.97% of excess over
    27                                        $500,000
    28  Over $1,000,000                       $81,806 plus 10.30% of excess over
    29                                        $1,000,000
 
    30    (2) For taxable years beginning after two thousand five and before two
    31  thousand nine:
 
    32  If the New York taxable income is:    The tax is:
    33  Not over $16,000                      4% of the New York taxable

    34                                        income
    35  Over $16,000 but not over $22,000     $640 plus 4.5% of excess over
    36                                        $16,000
    37  Over $22,000 but not over $26,000     $910 plus 5.25% of excess over
    38                                        $22,000
    39  Over $26,000 but not over $40,000     $1,120 plus 5.9% of excess over
    40                                        $26,000
    41  Over $40,000                          $1,946 plus 6.85% of excess over
    42                                        $40,000
 
    43    § 4. Paragraphs 2, 3, 4, 5, 6, 7 and 8 of subsection  (b)  of  section
    44  601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8 and 9.
    45    §  5.  Paragraph 1 of subsection (b) of section 601 of the tax law, as
    46  amended by section 1 of part Y3 of chapter 62 of the laws  of  2003,  is
    47  amended to read as follows:

    48    (1) For taxable years beginning after two thousand eight:
 
    49  If the New York taxable income is:    The tax is:
    50  Not over $11,000                      4% of the New York taxable

        A. 5912                             3
 
     1                                        income
     2  Over $11,000 but not over $15,000     $440 plus 4.5% of excess over
     3                                        $11,000
     4  Over $15,000 but not over $17,000     $620 plus 5.25% of excess over
     5                                        $15,000
     6  Over $17,000 but not over $30,000     $725 plus 5.9% of excess over
     7                                        $17,000

     8  Over $30,000 but not over $250,000    $1,492 plus 6.85% of excess over
     9                                        $30,000
    10  Over $250,000 but not over $500,000   $16,562 plus 8.25% of excess over
    11                                        $250,000
    12  Over $500,000 but not over $1,000,000 $37,187 plus 8.97% of excess over
    13                                        $500,000
    14  Over $1,000,000                       $82,037 plus 10.30% of excess over
    15                                        $1,000,000
 
    16    (2) For taxable years beginning after two thousand five and before two
    17  thousand nine:
 
    18  If the New York taxable income is:    The tax is:
    19  Not over $11,000                      4% of the New York taxable

    20                                        income
    21  Over $11,000 but not over $15,000     $440 plus 4.5% of excess over
    22                                        $11,000
    23  Over $15,000 but not over $17,000     $620 plus 5.25% of excess over
    24                                        $15,000
    25  Over $17,000 but not over $30,000     $725 plus 5.9% of excess over
    26                                        $17,000
    27  Over $30,000                          $1,492 plus 6.85% of excess over
    28                                        $30,000
 
    29    §  6.  Paragraphs  2, 3, 4, 5, 6, 7 and 8 of subsection (c) of section
    30  601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8 and 9.
    31    § 7. Paragraph 1 of subsection (c) of section 601 of the tax  law,  as
    32  amended  by  section  1 of part Y3 of chapter 62 of the laws of 2003, is
    33  amended to read as follows:

    34    (1) For taxable years beginning after two thousand eight:
 
    35  If the New York taxable income is:    The tax is:
    36  Not over $8,000                       4% of the New York taxable
    37                                        income
    38  Over $8,000 but not over $11,000      $320 plus 4.5% of excess over
    39                                        $8,000
    40  Over $11,000 but not over $13,000     $455 plus 5.25% of excess over
    41                                        $11,000
    42  Over $13,000 but not over $20,000     $560 plus 5.9% of excess over
    43                                        $13,000
    44  Over $20,000 but not over $250,000    $973 plus 6.85% of excess over

    45                                        $20,000
    46  Over $250,000 but not over $500,000   $16,728 plus 8.25% of excess over
    47                                        $250,000
    48  Over $500,000 but not over $1,000,000 $37,353 plus 8.97% of excess over
    49                                        $500,000
    50  Over $1,000,000                       $82,203 plus 10.30% of excess over
    51                                        $1,000,000

        A. 5912                             4
 
     1    (2) For taxable years beginning after two thousand five and before two
     2  thousand nine:
 
     3  If the New York taxable income is:    The tax is:
     4  Not over $8,000                       4% of the New York taxable

     5                                        income
     6  Over $8,000 but not over $11,000      $320 plus 4.5% of excess over
     7                                        $8,000
     8  Over $11,000 but not over $13,000     $455 plus 5.25% of excess over
     9                                        $11,000
    10  Over $13,000 but not over $20,000     $560 plus 5.9% of excess over
    11                                        $13,000
    12  Over $20,000                          $973 plus 6.85% of excess over
    13                                        $20,000
 
    14    §  8.  Paragraphs  2 and 3 of subsection (d) of section 601 of the tax
    15  law, as amended by section 1 of part R of chapter  63  of  the  laws  of
    16  2003, subparagraph (B) of paragraph 3 as separately amended by section 2
    17  of  part  R  of  chapter  63 of the laws of 2003, are amended to read as
    18  follows:

    19    (2) Resident  married  individuals  filing  joint  returns,  surviving
    20  spouses,  resident  heads of households, resident unmarried individuals,
    21  resident  married  individuals  filing  separate  returns  and  resident
    22  estates  and trusts. (A) The tax table benefit is the difference between
    23  (i) the amount  of  taxable  income  set  forth  in  the  tax  table  in
    24  subsection  (a),  (b)  or  (c)  of this section, as the case may be, not
    25  subject to the [second highest] 6.85 percent rate of tax for the taxable
    26  year multiplied by such rate and (ii) the second highest dollar  denomi-
    27  nated  tax  for such amount of taxable income set forth in the tax table
    28  applicable to the taxable year in subsection (a), (b)  or  (c)  of  this
    29  section, as the case may be, less the tax table benefit in paragraph one
    30  of this subsection.

    31    (B)  The  fraction is computed as follows: the numerator is the lesser
    32  of fifty thousand dollars or the  excess  of  New  York  adjusted  gross
    33  income  for the taxable year over one hundred fifty thousand dollars and
    34  the denominator is fifty thousand dollars.
    35    (C) This paragraph shall [only] apply to taxable years beginning after
    36  two thousand [two and before two thousand six] eight.
    37    (3)  Resident married  individuals  filing  joint  returns,  surviving
    38  spouses,  resident  heads of households, resident unmarried individuals,
    39  resident  married  individuals  filing  separate  returns  and  resident
    40  estates  and trusts. (A) The tax table benefit is the difference between
    41  (i) the amount  of  taxable  income  set  forth  in  the  tax  table  in

    42  subsection  (a),  (b)  or  (c)  of this section, as the case may be, not
    43  subject to the 8.25 percent rate of tax for the taxable year  multiplied
    44  by such rate and (ii) the third  highest dollar denominated tax for such
    45  amount  of  taxable  income set forth in the tax table applicable to the
    46  taxable year in subsection (a), (b) or (c) of this section, as the  case
    47  may be, less the tax table benefit in paragraph one of this subsection.
    48    (B)  The  fraction is computed as follows: the numerator is the lesser
    49  of fifty thousand dollars or the  excess  of  New  York  adjusted  gross
    50  income  for the taxable year over two hundred fifty thousand dollars and
    51  the denominator is fifty thousand dollars.

    52    (C) This paragraph shall apply to taxable years  beginning  after  two
    53  thousand eight.

        A. 5912                             5
 
     1    (4)  Resident  married  individuals  filing  joint  returns, surviving
     2  spouses, resident heads of households, resident  unmarried  individuals,
     3  resident  married  individuals  filing  separate  returns  and  resident
     4  estates and trusts. (A) The tax table benefit is the difference  between
     5  (i)  the  amount  of  taxable  income  set  forth  in  the  tax table in
     6  subsection (a), (b) or (c) of this section, as  the  case  may  be,  not
     7  subject  to the 8.97 percent rate of tax for the taxable year multiplied
     8  by such rate and (ii) the second highest dollar denominated tax for such

     9  amount of taxable income set forth in the tax table  applicable  to  the
    10  taxable  year in subsection (a), (b) or (c) of this section, as the case
    11  may be, less the tax table benefit in paragraph one of this subsection.
    12    (B) The fraction is computed as follows: the numerator is  the  lesser
    13  of  fifty  thousand  dollars  or  the  excess of New York adjusted gross
    14  income for the taxable year over five hundred thousand dollars  and  the
    15  denominator is fifty thousand dollars.
    16    (C)  This  paragraph  shall apply to taxable years beginning after two
    17  thousand eight.
    18    (5) Resident  married  individuals  filing  joint  returns,  surviving
    19  spouses,  resident  heads of households, resident unmarried individuals,

    20  resident  married  individuals  filing  separate  returns  and  resident
    21  estates  and trusts. (A) The tax table benefit is the difference between
    22  (i) the amount  of  taxable  income  set  forth  in  the  tax  table  in
    23  subsection  (a),  (b)  or  (c)  of this section, as the case may be, not
    24  subject to the highest rate of tax for the taxable  year  multiplied  by
    25  such  rate  and (ii) the highest dollar denominated tax set forth in the
    26  tax table applicable to the taxable year in subsection (a), (b)  or  (c)
    27  of this section, as the case may be, less the sum of the tax table bene-
    28  fits in paragraphs one and two of this subsection.
    29    (B)  For  such taxpayers with adjusted gross income over [five hundred
    30  thousand] one million dollars, the fraction is [one. Provided,  however,

    31  that the total tax prior to the application of any tax credits shall not
    32  exceed  the highest rate of tax set forth in the tax table in subsection
    33  (a) of  this  section  multiplied  by  the  taxpayer's  taxable  income]
    34  computed  as  follows:  the  numerator  is  the lesser of fifty thousand
    35  dollars or the excess of New York adjusted gross income for the  taxable
    36  year  over  one  million  dollars  and the denominator is fifty thousand
    37  dollars.
    38    (C) This paragraph shall [only] apply to taxable years beginning after
    39  two thousand [two and before two thousand six] eight.
    40    § 9. This act shall take effect immediately.
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