Assemblyman Magnarelli Cuts Taxes for 99 Percent of New Yorkers
Assemblyman Bill Magnarelli (D-Syracuse, Geddes and Van Buren) announced the Assembly passed progressive tax code reforms that will reduce tax rates for 99 percent of New Yorkers and ensure that millionaires and billionaires pay their fair share (A.4002). Both the governor and the Senate announced support for the bill.
The new high-income tax bracket for households earning more than $2 million per year will raise nearly $6 billion in revenue over the next three years, which will be used to restore crucial funding for schools and healthcare, create jobs and pay down the budget deficit. The agreement benefits middle-class taxpayers by cutting income tax rates and indexing the standard state tax deduction to inflation, resulting in an additional gain for taxpayers each year.
"This bill is the first restructuring of the tax code in decades, and the result is a victory for middle-class and working families," Assemblyman Magnarelli said. "By shifting a piece of the tax burden to those who can most afford to pay it, we were able to cut taxes for 99 percent of New Yorkers while raising $2 billion per year for jobs and deficit reduction."
Under the new tax code, rates for 4.4 million people will be reduced, resulting in a tax cut of $690 million for middle-class and working families. This middle-class tax cut is paid for by establishing a higher tax bracket for those making over $2 million per year, less than 1 percent of all New York residents.
The agreement delivers an unprecedented level of fairness to the tax code and came after months of public debate over extending the millionaire tax, an effort led by the Assembly Majority and supported by 72 percent of New Yorkers, according to a Siena Research Poll released in October.i
"If we had done nothing, the result would have been another windfall for millionaires, which would have put a bigger hole in the budget and hung middle-class families out to dry," Assemblyman Magnarelli said. "We’re glad that our partners in government recognized the need to cut taxes for 99 percent of New Yorkers while ensuring that millionaires and billionaires pay their fair share.
"By giving middle-class families more to spend on goods and services, we can help them afford the things they need, which will be good for jobs, and ultimately good for economic growth in New York State," Assemblyman Magnarelli added.
Along with this tax cut for middle-class and working families, the new tax bracket for top earners would help the economy by raising $2 billion every year for the next three years to close the budget gap and fund job-creating initiatives like infrastructure projects, a jobs program for inner-city youths, grant money for victims of national disasters and an MTA payroll tax reduction.