The New York City public advocate is urging lawmakers to tax the ultra-rich to help address financial needs amid the COVID-19 pandemic.
During a March 31 virtual news conference, Public Advocate Jumaane Williams (D) and several grassroots organizations argued that healthcare spending needs to be protected from potential budget cuts and called for lawmakers to pass a proposal that would levy an additional tax on ultra-millionaires.
The state's budget was due April 1 but was not finalized in time.
Under a bill (S. 7677) introduced February 5, the top state income tax rate would increase to 11.82 percent for taxpayers who earn $100 million or more, beginning in 2021. It would also establish the following new brackets for taxpayers making $1 million per year to $100 million and above:
income over $1 million up to $5 million would be taxed at 9.62 percent;
income above $5 million up to $10 million would be taxed at 10.32 percent;
income over $10 million up to $100 million would be taxed at 11.32 percent; and
income above $100 million would be taxed at 11.82 percent.
Sponsored by Sen. James Sanders Jr. (D), S. 7677 was referred to the Budget and Revenue Committee and would take effect January 1, 2021. It is expected to bring in more than $4 billion in annual tax revenue and would help to prevent cuts for other programs, according to a March 31 Facebook Live video by Williams. The bill calls for half the additional revenue to go to public education and half to Medicare for fiscal 2021, according to its sponsor memo.
The state has had a millionaire's tax since 2009, under which New York taxable income of more than $1 million is taxed at 8.82 percent.
Williams also criticized Gov. Andrew Cuomo (D) in the video, saying Cuomo "refuses to entertain" the proposal because he doesn't want to tax rich people. Williams said Cuomo’s resistance to the tax expansion was flawed, saying that the ultra-rich would still fare better during the pandemic even if they were taxed at higher rates.
The United Federation of Teachers is also calling for an expansion of the millionaire’s tax to prevent public school funding cuts, according to a March 12 release. The union cited a February 10 poll showing that 92 percent of New York voters support this plan.
Williams did not respond to a request for comment by press time.