Assemblymember Phil Steck (D-Colonie) announced that the Assembly budget proposal seeks to help families in the Capital Region get ahead by enacting tax cuts for the middle class while asking New York’s millionaires and billionaires to pay their fair share (E.1047).

The proposal would reform the tax code by applying the current top personal income tax rate to all New Yorkers earning $1 million or more, increasing the rate for those earning above $5 million and implementing a higher rate for those earning above $10 million. Additionally, the plan provides tax relief to households earning between $40,000 and $150,000, affecting over 5 million taxpayers. The expansion of the “Millionaire’s Tax” would generate an additional $2 billion in tax revenue annually compared to the current tax rate structure.

“In 1980, the top one percent of earners were making 11.9 percent of the state’s income, and in 2016 the same group is making 30.2 percent of the state’s income,” said Assemblymember Steck. “This group has increased its wealth so disproportionately that it is completely reasonable to ask that they contribute more to the welfare of our state. The tax increase on them is like a flea on the back of an elephant. We are fighting to lessen the burden on the middle class by reducing income taxes for over 5 million taxpayers, while asking millionaires and billionaires to pay their fair share.”

In an effort to help those attempting to climb the ladder to the middle class, the proposal also expands the Earned Income Tax Credit (EITC) over two years, benefiting more than 1.6 million working families. Enacted in 1975 during the Ford administration, the EITC – which is complemented by a similar state program – continues to offer highly targeted tax relief for low-income earners who often struggle to meet the rising costs of living.

“Our tax proposal, which I have advocated for since joining the Assembly, acknowledges the overwhelming burdens placed on working families and begins the process of moving us back to a system where prosperity is shared by all,” said Assemblymember Steck. “This is exactly the sort of tax reform the people of my district have told me they’re looking for – I’m very proud of what we’ve put forward.”