Enacts the "fair share tax reform act of 2009"

19 Co-sponsors

• Antoine M. Thompson
• Neil D. Breslin
• Ruben Diaz
• Ruth Hassell-Thompson
• Shirley L. Huntley
• Hiram Monserrate
• Velmanette Montgomery
• George Onorato
• Kevin S. Parker
• Bill Perkins
• John L. Sampson
• Diane J. Savino
• José M. Serrano
• Daniel L. Squadron
• Toby Ann Stavisky
• Andrea Stewart-Cousins
• Eric Adams
• Joseph P. Addabbo Jr.
• Thomas K. Duane

Title of bill

An act to amend the tax law, in relation to enacting the "fair share tax reform act of 2009"

Purpose

This legislation would provide a slight tax on New Yorkers with an annual of income in excess of $250,000.

Summary of provisions

Section 1 states the legislative intent and sets forth the need to enact the "Fair Share Tax Reform Act of 2009."

Section 2 renumbers existing State Tax law paragraphs.

Section 3 amends paragraph 1 of subsection (a) of section 601 of the tax law, as amended by section 1 of part Y3 of Chapter 62 of the laws of 2003 to create new income tax brackets for income over $250,000 for taxpayers filing as married.

Section 4 renumbers existing State Tax Law paragraphs.

Section 5 amends Paragraph 1 of subsection (b) of Section 601 of the State Tax Law, as amended by Section 1 of part Y3 of Chapter 62 of the Laws of 2003 to create new income tax brackets for income over $250,000 for taxpayers filing as head of household.

Section 6 renumbers existing State Tax Law paragraphs.

Section 7 amends paragraph 1 of subsection (c) of Section 601 of the State Tax Law, as amended by section 1 of part Y3 of Chapter 62 of the Laws of 2003 to create new income tax brackets for income over $250,000 for taxpayers filing as single.

Section 8 amends benefit recapture table provisions stipulated in Section 601 of the State Tax Law that conforms these recapture provisions to make them consistent with the changes in the personal income tax brackets mandated by Sections 3,5, and 7 of this bill.

Section 9 states the effective date.

Justification

Given the current economic crisis in New York State and across the country, the Legislature must take action to enact fair and equitable reforms to New York State's tax system. over the last 30 years, New York State's personal income tax laws have become increasingly unfair and inequitable. In fact, over the last 30 years, New York State has cut its top personal income tax rate by more than 50%. As a result, the poorest 20% of New Yorkers now pay 12.6% of their income in state and local taxes, middle class New Yorkers making between $27,000 and $44,000 a year pay 11.6%, and the wealthiest 1% pay only 6.5%.

The severe cuts in taxes to the wealthy have led New York State to increasingly rely on other more regressive stale and local fees and taxes, including sales and property taxes. With the current recession and fiscal crisis, New York's poor and working families are again faced with higher fees and taxes while suffering major cutbacks in education, health and public protections services. Instead of placing more of a burden on these families, the Legislature must enact modest tax increases on income over $250,000.

The Fair Share Tax Reform Act of 2009 is an effort to undo the regressive effects of the last 30 years of New York tax policy. Its enactment would insure all New Yorkers contribute their fare share and would restore some progressivity back to our personal income tax system.

Legislative history

New Legislation.

Fiscal implications

This legislation would generate approximately $6.2 billion in new revenue for the state.

Effective date

This act shall take effect immediately.