New York City’s top 1% make about $2.2 million annually, on average. That’s nearly 42 times the average income earned by the bottom 99%, $50,107, according to the Economic Policy Institute. Meanwhile, New York State has a regressive tax system, meaning that the more money you make, the less taxes you pay.
In short: working New Yorkers are over-taxed, but the billionaires are under-taxed. Those in the wealthiest 1% are taking home the lion’s share of income gains, yet they pay a smaller share of their income in combined state and local taxes than lower and middle-income families.
A progressive tax system would work the opposite way: the more you make, the more you can afford to pay in taxes. This bill would expand income brackets to ensure that high-income New Yorkers pay their “fair share” in taxes.
The millionaire’s tax that was passed in 2009 as a response to the financial crisis needs to be extended very few years and is not set to expire in 2024. Additionally, New York’s tax brackets are based on income distributions from the 1970s and 80s. We need to:
- Permanently extend and expand the millionaire’s tax.
- Adjust New York's tax brackets in both directions, up and down, to reflect explosive income gains by billionaires and millionaires.
This would raise revenue by $2.2 billion/year - or more.