Proposal to hike taxes on millionaires is fair, Heastie says

New York Assembly Speaker Carl Heastie defended a proposal to raise taxes on millionaires, calling it a fair way to raise needed revenue despite strong opposition from Senate Republicans and a shrug from Gov. Andrew Cuomo. Despite the challenges, Heastie vowed to continue pushing his proposal, which would raise income taxes on the state’s wealthiest workers while extending some tax benefits to middle- and low-income residents. “This is about fairness and equity, and asking those who can to do just a little bit more so it can improve the lives of many, many others,” the Bronx Democrat said on public radio’s “The Capitol Pressroom.” But unless he can do something to change the minds of Senate Majority Leader John Flanagan or Cuomo, the tax hike isn’t going anywhere. Flanagan, R-Long Island, has said he’s opposed to raising taxes on anyone. Cuomo, a Democrat, dismissed the idea earlier this week. “I don’t believe there’s any reason or appetite to take up taxes this year,” he told reporters Tuesday. Heastie’s plan, which would raise an estimated $1.2 billion in new revenue, would impose the state’s current top income tax rate of 8.82 percent on anyone making between $1 million and $5 million a year. Two new, higher rates would be created for higher brackets: 9.32 percent for those making between $5 million and $10 million and 9.82 percent on more than $10 million.

The hikes would raise an estimated $1.7 billion. About 56,000 taxpayers would pay more, with the average increase projected to be $33,000. The proposal would also reduce tax rates for middle class tax- payers who make between $40,000 and $150,000 from 6.45 percent to 6.25 percent. That cut would apply to taxpayers who file jointly as a married couple, but similar reductions would apply to other types of filers. Some 5.5 million taxpayers would see their liability reduced, saving on average of $50. Finally, about 1.6 million lowincome workers would see an increase in the earnedincome tax credit, with the average recipient receiving nearly $110 more. The changes, if approved, would go into effect in the 2018 tax year.