What's happening
The bill increases state income tax rates on high earners, creating new tax brackets for millionaires and allocating revenue to education and Medicaid.
Why it matters
Creates several new high-income tax brackets, sharply increasing rates for millionaires and ultra-high earners. The proposed top marginal rates rise to 9.62% at $1 million, 10.32% at $5 million, 11.32% at $10 million, and 11.82% above $100 million. This is a significant increase over current top rates, meaning the wealthiest New Yorkers could pay much more in state taxes.
Expands the tax base for higher rates by lowering the threshold for top brackets. The bill lowers the income level at which higher tax rates begin (from over $2.1 million down to $1 million for individuals and similar reductions for other filing statuses), so more high-income earners will be subject to these increased rates, not just the ultra-wealthy.
Directs new tax revenue specifically to public purposes: education and Medicaid. By requiring 50% of the new high-earner tax revenue to go to the state lottery fund (which supports education) and 50% to Medicaid, the bill ties tax increases for the wealthy directly to funding for schools and health care for low-income and vulnerable residents.
Establishes ongoing, indexed increases and administrative measures. The bill sets out new tax brackets and rates for each year moving forward, ensuring that these higher rates are not just temporary. It also includes provisions for covering administrative costs and ensuring adequate funds for taxpayer refunds, indicating attention to implementation and fiscal management.
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Tax Millionaires for Equity
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History
- Referred to budget and revenue
Full text
8 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7677
IN SENATE
February 5, 2020
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to extending the top state income tax rate, and establishing the millionaire's tax and economic equity act of 2020
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and cited as the "millionaire's tax and economic equity act of 2020".
§ 2. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 1 of part P of chapter 59 of the laws of 2019, and clause (viii) as added by section 1 of part R of chapter 59 of the laws of 2017, are amended to read as follows:
(iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over
$27,900 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over
$43,000 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over
$161,550 Over $323,200 but not over $19,403 plus 6.85% of excess [$2,155,350] $1,000,000 over $323,200 Over $1,000,000 but not over $65,764 plus 9.62% of excess over $5,000,000 $1,000,000 Over $5,000,000 but not over $450,564 plus 10.32% of excess over $10,000,000 $5,000,000
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15116-02-0
S. 7677 2
Over $10,000,000 but not over $966,564 plus 11.32% of excess over $100,000,000 $10,000,000 Over [$2,155,350 $144,905 plus 8.82% of excess over
$2,155,350] $100,000,000 $11,154,564 plus 11.82% of excess
over $100,000,000
(v) For taxable years beginning in two thousand twenty-two the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over
$27,900 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over
$161,550 Over $323,200 but not over $19,124 plus [$2,155,350] $1,000,000 6.85% of excess over $323,200 Over $1,000,000 but not over $65,485 plus 9.62% of excess over $5,000,000 $1,000,000 Over $5,000,000 but not over $450,285 plus 10.32% of excess over $10,000,000 $5,000,000 Over $10,000,000 but not over $966,285 plus 11.32% of excess over $100,000,000 $10,000,000 Over [$2,155,350 $144,626 plus 8.82% of excess over
$2,155,350] $100,000,000 $11,154,285 plus 11.85% of
excess over $100,000,000
(vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over
$27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over
$161,550 Over $323,200 but not over $18,834 plus 6.85% of [$2,155,350] $1,000,000 excess over $323,200 Over $1,000,000 but not over $65,195 plus 9.62% of excess over $5,000,000 $1,000,000 Over $5,000,000 but not over $449,995 plus 10.32% of excess over $10,000,000 $5,000,000 Over $10,000,000 but not over $965,995 plus 11.32% of excess over $100,000,000 $10,000,000 Over [$2,155,350 $144,336 plus 8.82% of excess over
$2,155,350] $100,000,000 $11,153,995 plus 11.82% of excess
over $100,000,000
(vii) For taxable years beginning in two thousand twenty-four the following rates shall apply:
S. 7677 3
If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over
$27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over
$161,550 Over $323,200 but not over $18,544 plus 6.85% of [$2,155,350] $1,000,000 excess over $323,200 Over $1,000,000 but not over $64,905 plus 9.62% of excess over $5,000,000 $1,000,000 Over $5,000,000 but not over $449,705 plus 10.32% of excess over $10,000,000 $5,000,000 Over $10,000,000 but not over $965,705 plus 11.32% of excess over $100,000,000 $10,000,000 Over [$2,155,350 $144,047 plus 8.82% of excess over
$2,155,350] $100,000,000 $11,153,705 plus 11.82% of excess
over $100,000,000
(viii) For taxable years beginning after two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over
$27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over
$161,550 Over $323,200 but not over $18,252 plus 6.85% of $1,000,000 excess over $323,200 Over $1,000,000 but not over $64,613 plus 9.62% of excess over $5,000,000 $1,000,000 Over $5,000,000 but not over $449,413 plus 10.32% of excess over $10,000,000 $5,000,000 Over $10,000,000 but not over $965,413 plus 11.32% of excess over $100,000,000 $10,000,000 Over $100,000,000 $11,152,554 plus 11.82% of excess
over $100,000,000
§ 3. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 2 of part P of chapter 59 of the laws of 2019, and clause (viii) as added by section 2 of part R of chapter 59 of the laws of 2017, are amended to read as follows:
(iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
S. 7677 4
$17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over
$20,900 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over
$32,200 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over
$107,650 Over $269,300 but not over $16,304 plus 6.85% of [$1,616,450] $1,000,000 excess over $269,300 Over $1,000,000 but not over $66,357 plus 9.62% of excess over $5,000,000 $1,000,000 Over $5,000,000 but not over $451,157 plus 10.32% of excess over $10,000,000 $5,000,000 Over $10,000,000 but not over $967,157 plus 11.32% of excess over $100,000,000 $10,000,000 Over [$1,616,450 $108,584 plus 8.82% of excess over
$1,616,450] $100,000,000 $11,155,157 plus 11.82% of excess
over $100,000,000
(v) For taxable years beginning in two thousand twenty-two the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over
$20,900 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over
$107,650 Over $269,300 but not over $16,079 plus 6.85% of excess [$1,616,450] $1,000,000 over $269,300 Over $1,000,000 but not over $66,132 plus 9.62% of excess over $5,000,000 $1,000,000 Over $5,000,000 but not over $450,932 plus 10.32% of excess over $10,000,000 $5,000,000 Over $10,000,000 but not over $966,932 plus 11.32% of excess over $100,000,000 $10,000,000 Over [$1,616,450 $108,359 plus 8.82% of excess over
$1,616,450] $100,000,000 $11,154,932 plus 11.82% of excess
over $100,000,000
(vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over
$20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over
S. 7677 5
$107,650 Over $269,300 but not over $15,845 plus 6.85% of excess [$1,616,450] $1,000,000 over $269,300 Over $1,000,000 but not over $65,898 plus 9.62% of excess over $5,000,000 $1,000,000 Over $5,000,000 but not over $450,698 plus 10.32% of excess over $10,000,000 $5,000,000 Over $10,000,000 but not over $966,698 plus 11.32% of excess over $100,000,000 $10,000,000 Over [$1,616,450 $108,125 plus 8.82% of excess over
$1,616,450] $100,000,000 $11,154,698 plus 11.82% of excess
over $100,000,000
(vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over
$20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over
$107,650 Over $269,300 but not over $15,612 plus 6.85% of excess [$1,616,450] $1,000,000 over $269,300 Over $1,000,000 but not over $65,665 plus 9.62% of excess over $5,000,000 $1,000,000 Over $5,000,000 but not over $450,465 plus 10.32% of excess over $10,000,000 $5,000,000 Over $10,000,000 but not over $966,465 plus 11.32% of excess over $100,000,000 $10,000,000 Over [$1,616,450 $107,892 plus 8.82% of excess over
$1,616,450] $100,000,000 $11,154,465 plus 11.82% of excess
over $100,000,000
(viii) For taxable years beginning after two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over
$20,900 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over
$107,650 Over $269,300 but not over $15,371 plus 6.85% of $1,000,000 excess over $269,300 Over $1,000,000 but not over $65,424 plus 9.62% of excess over $5,000,000 $1,000,000 Over $5,000,000 but not over $ 450,224 plus 10.32% of excess over $10,000,000 $5,000,000 Over $10,000,000 but not over $966,224 plus 11.32% of excess over
S. 7677 6
$100,000,000 $10,000,000 Over $100,000,000 $11,154,224 plus 11.82% of excess
over $100,000,000
§ 4. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 3 of part P of chapter 59 of the laws of 2019, and clause (viii) as added by section 3 of part R of chapter 59 of the laws of 2017, are amended to read as follows:
(iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over
$13,900 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over
$21,400 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over
$80,650 Over $215,400 but not over $13,109 plus 6.85% of excess [$1,077,550] $1,000,000 over $215,400 Over $1,000,000 but not over $66,855 plus 9.62% of excess over $5,000,000 $1,000,000 Over $5,000,000 but not over $451,655 plus 10.32% of excess over $10,000,000 $5,000,000 Over $10,000,000 but not over $967,655 plus 11.32% of excess over $100,000,000 $10,000,000 Over [$1,077,550 $72,166 plus 8.82% of excess over
$1,077,550] $100,000,000 $11,155,655 plus 11.82% of excess
over $100,000,000
(v) For taxable years beginning in two thousand twenty-two the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over
$13,900 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to extending the top state income tax rate, and establishing the millionaire's tax and economic equity act of 2020
Purpose or general idea of bill
Establishes the Millionaire's Tax and Economic Equity Act of 2020 that increases the state personal income tax rates for incomes over $1 million per taxable year for the purpose of promoting economic equity and avoiding cuts in spending to public education and Medicaid.
Summary of provisions
This legislation would amend the Tax Law by raising the personal income tax rates for those making over $1 million per taxable year. For incomes from $1 million up to $5 million, the tax rate increases from 6.85%/8.82% up to 9.62%. For incomes from $5 million to $10 million, the tax rate increases from 8.82% to 10.32%. For incomes from $10 million up to $100 million, the tax rate increases from 8.82% up to 11.32%. The top tax rate, which is for those with annual incomes over $100 million, increases from 8.82% to 11.82%. Half the revenue would go to public education and the other half would go to Medicaid for SFY 2020-21.
Justification
This legislation would increase the state personal income tax rates for incomes over $1 million per taxable year for the purpose of promoting economic equity and avoiding cuts in spending to public education and Medicaid. Half the revenue would go to public education and the other half would go to Medicaid for SFY 2020-21.
Prior legislative history
New bill.
Fiscal implications for state and local governments
This bill is estimated to increase state revenues over $4.5 billion annually.
Effective date
This act shall take effect immediately, provided, however, that section five of this act shall take effect January 1, 2021 and shall apply to taxable years beginning on and after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.