New York State Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) has joined 73 other members of the State Assembly in introducing A.9179, which would reform the New York State Income Tax Code.

Specifically, the proposal would:

• Increase the Earned Income Tax Credit (EITC) from 30% to 35% for more than 1.6 million working class New Yorkers,
• Reduce the Income Tax Rate for New Yorkers making between $40,000 and $150,000 from 6.45% to 6.25 %,
• Apply the current 8.82% Tax Rate to all incomes between $1 million and $5 million. Currently that rate applies only to those making $2 million or more,
• For those making $5 million to $10 million, the income tax rate would be 9.32%,
• For those earning more than $10 million, the income tax rate would be 9.82%, and
• The new tax rates for high wealth earners would generate nearly $1 billion for budget priorities such as State Aid to Education.

Thiele stated, “The issue of income inequality is being highlighted across the nation during the 2016 Presidential Campaign. The top 0.1% of the population now possesses the same amount of wealth as the bottom 90%, Income inequality has grown consistently since 1978. New York State needs a Tax Code that is more progressive and better reflects the ability of New Yorkers to pay. By increasing the EITC and reducing the tax rates for those making $150,000, the middle class will get a much needed tax break. By increasing the tax rates for millionaires, we will take a step towards guaranteeing that they pay their fair share, Top priorities, such as public education, will be properly funded. This will shift a portion of the cost of education away from the regressive property tax to the progressive income tax, where high wealth taxpayers will contribute their share.”

Thiele stated that he was confident that the State Assembly would adopt this tax reform proposal as part of its 2016 Budget proposal.