By Dan Murphy
As Governor Cuomo and the State Legislature, led by State Senate Majority Leader Andrea Stewart-Cousins, from Yonkers, debates a state budget for the fiscal year which starts on April 1, one packet of bills under consideration is the “Invest In Our New York Act,” a package of six bills that would end tax breaks for the wealthiest New Yorkers and would raise a total of $50 Billion to invest in housing, healthcare, schools, teachers, towns, cities, workers and youth.
The Yonkers City Council currently has a resolution before it supporting the “Invest in Our New York Act.” The resolution states, WHEREAS, these six bills are pertinent as New York State faces a deficit of approximately $60 billion over the next four years; and WHEREAS, the Invest In Our New York Act will provide much needed relief to the people of New York, who are hurting from the COVID-19 pandemic.
Currently in New York, there are 1.4 million residents facing eviction, 1.2 million persons uninsured, and 60% of New Yorkers with lost income, while New York’s billionaires grew $77 billion richer during the pandemic, to a total net worth of $600 billion; and,
The first state bill is the Progressive Income Tax, which aims to create an equitable tax system where New Yorkers pay a higher rate if they earn significantly more money, and will reportedly raise between $12-18 billion; and the Progressive Income Tax is necessary as individuals with incomes between $21,400 and $1,077,550 all pay roughly the same tax rate of 6.5%. As higher earners should pay a higher rate, the Progressive Income Tax will raise the tax rates on the top 5% of New Yorkers ($300,000 and above); and
The second state bill is the Capital Gains Tax, which aims to tax income from investments like stocks the same as wages, and will reportedly raise $7 billion;
The third state bill is the Heirs’ Tax, proposed in Senate Bill which will create a progressive tax on large sums of inherited wealth, and will reportedly raise $8 billion; and This Inheritance Tax will not affect family houses up to $2 million, money from pensions or retirement funds, and family farms; and
The fourth state bill is the Billionaires’ Tax, which will allow an additional tax on wealth, will reportedly raise $23 billion in the first year, and $1.3 billion per year thereafter; and while New York already has a wealth tax, called a property tax, which homeowners must pay every year, billionaires are not taxed on massive stock portfolios. A Billionaires’ tax would treat billionaires’ gains in wealth as income, and these increases would be taxed at income tax rates.
The fifth state bill is the Corporate Tax, proposed in Senate which will repeal former President Trump’s tax cuts by restoring taxes on the profit a corporation makes each year, and will reportedly raise $9 billion; and
The sixth state bill is the Wall Street Tax, proposed in Senate which will establish a small tax on Wall St. financial transactions, and will reportedly raise $12-29 billion; and WHEREAS, the Wall Street Tax would have New York mirror other major financial centers like London and Hong Kong, which places taxes on financial transactions. The financial industry is the largest industry in New York State, comprising of approximately 30% of the state economy. This bill would place small taxes on trades of stocks, bonds, and derivatives, similar to a tax on stocks that existed in New York until 1981.
BE IT RESOLVED, that the Yonkers City Council, hereby calls on the New York State Assembly and the Senate of New York State to adopt the six state bills contained in the Invest In Our New York Act,” end of resolution.
During a Council Budget Committee meeting, a debate ensued over the resolution and the Invest in NY Act. Majority Leader Pineda Isaac said, “this hopes to rebuild NY’s economy by ending tax breaks on rich New Yorkers, help the working people of our state, and put money into healthcare, jobs, housing. We know that folks in the highest tax brackets have received benefits from out tax code, and lower income families are affected. These bills show that we should tax the richest people in the country, and that they can handle it, and the money will go back into our economy and make sure that we live in a state that is equitable for all.”
Minority Leader Mike Breen opposed the resolution and the proposed new taxes.”This is a NY exit tax act. How many times can you tax a dollor, a lot of these taxes have already been paid, in inheritance and in the stock market. We arleard have a progressive tax in NY State, and higher income earners already pay a lot in taxes. You are going to see people leave the State. I won’t support any of these 6 tax increases.”
Councilwoman Shanae Williams said, “Every year we have a budget deficit in our budget. We have to find a way to become self sustainable and this would help with that, and fund our schools moving forward. Outside of taxing the rich what other options do we have other than futher taxing residents in Yonkers?”
Councilman and Budget Chair Anthony Merante also opposed the resolution.“These type of tax benefits encourages iinvestiment by people with capital I would not support these tax increases. NY state received at least $12B from the the federal Rescue Plan, and the city received $89 Million. There are funds out there to alleviate shortfalls. And these proposed tax increases just don’t affect millionaires.”
Finance Commission John Liesweiszei said that there are 1900 tax filers in Yonkers earnng more than $323,000 per year, and 125 residents earning more than $1 Million per year.
