ALBANY – The rich – and super-rich – are being asked to pay billions of dollars more in state income taxes under a plan Assembly Democrats unveiled Thursday.
The higher tax rates – including a 10.32 percent rate for the roughly 100 people with New York taxable incomes over $100 million annually – will bring in about $5.6 billion in additional annual revenues for the state.
Assembly Speaker Carl Heastie said the revenues will help pay for schools, health care and other priorities and will come from higher tax rates imposed on “those who can most afford it.’’
The proposal will be a struggle to get passed as part of this year’s budget talks. Senate Republicans already said they want to cut taxes, not raise them, and they oppose extending a current surcharge on individuals making over $1 million annually. That surcharge, which Gov. Andrew Cuomo believes should be extended, is due to expire at the end of the year.
An extension of the existing surcharge is projected to bring in about $4.2 billion more in general fund revenues than would come if the tax rates on wealthy people are allowed to drop as scheduled at the end of the 2017 tax year. Under the new Assembly plan to establish multiple rates depending on just how rich someone is, Albany would get $5.6 billion more next year.
The Assembly Democratic plan calls for an 8.82 percent tax rate on New York taxable income for those earning between $1 million and $5 million annually. It steps up to 9.32 percent on incomes between $5 million and $10 million, 9.82 percent between $10 million and $100 million, and then the final tax rate of 10.32 percent for those making over $100 million a year.
In all, the Assembly projects there are 66,134 taxpayers who will pay the higher rates; they include residents and out-of-state residents who earn income in New York.
If the existing surcharge expires, individuals making over $1 million a year – or $2.1 million for couples filing jointly – will see their current tax rate drop from 8.82 percent to 6.85 percent.