| Phillip had the story yesterday regarding the introduction of the Fair Share Tax Reform Act of 2009 in the New York State Senate. The bill's sponsor, Sen. Eric Schneiderman, introduced the legislation yesterday and was joined by 18 co-sponsors who are advocating for this legislation.
So what is Fair Share Tax Reform? It will provide much-needed reform to the state's tax system that, under the current system, charges the same marginal tax rate if your household income is $40,000 or $4 million. Doesn't sound too fair, right? That is where these reforms come into play.
Under the Fair Share Tax Reform Act of 2009, the following would change:
- If you make $250,000 or more, your tax rate will go from 6.85 percent to 8.25 percent - a 1.4 percent increase. Just from that increase alone, an estimated $568 million of new revenue will be generated.
- If you make $500,000 or more, the tax rate will increase to 8.97 percent - a 2.12 percent increase. That increase will create $823 million in new revenue.
- If you make $1 million or more, your tax rate will be set at 10.3 percent. That is an increase of 3.45 percent. This increase (you could consider this portion of the bill the "millionaires tax") will bring in an estimated $4.6 billion in new revenue.
- In all, an estimated $6 billion could be made just from this one piece of legislation.
Some of the state senators who have backed this legislation supplied statements yesterday showing their support for the Fair Share Tax Reform Act of 2009.
"The Governor is absolutely right that in these challenging financial times, we all need to share the sacrifice," said Senator Eric Schneiderman (D-Manhattan/Bronx). "That's why it is so important that we ask our State's wealthiest to contribute their fair share as well. Currently, the richest 1% of New Yorkers pay 6.5% of their total income in state and local taxes while the poorest 20% of New Yorkers pay 12.6% of their income. Fair Share Tax Reform would return fairness to our tax system while cutting our State's budget deficit in half, eliminating the need to make the most devastating cuts to our communities."
"It is very irresponsible public policy for an individual who makes $40,000 a year to be subject to the same tax rate as an individual who makes $4,000,000 a year," added Senator Neil Breslin (D-Albany).
"The Fair Share Tax Reform Act implements a progressive tax structure, making it more equitable for low-income and working families," said Senator Antoine Thompson (D-Buffalo). "Those hardest hit are typically the ones that can least afford it."
"The tax cuts provided to the wealthiest New Yorkers over the past 30 years are no longer viable during these difficult economic times," said Senator Velmanette Montgomery (D-Brooklyn). "If we don't take this path and ask high-income New Yorkers to pay their fair share, then we will inevitably be faced with devastating cuts to health care, education and other essential community services. If there was ever a time to consider fairness in our tax code, it is now."
"The proposed legislation ensures that every New Yorker, irrespective of socio-economic status, is contributing their fair share to reduce our deficit," said Ruth Hassell Thompson (D-Mt. Vernon). "Our regressive tax system exacerbates the woes of our most vulnerable New Yorkers. A more progressive system would help us move forward as we create a more equitable system for working New Yorkers."
Senator Andrea Stewart-Cousins (D-Yonkers) stated, "The time has come for New Yorkers to be taxed in an equitable manner. Why should families earning $40,000 per year have the same marginal tax rate of those earning over $250,000? It doesn't make sense. We can no longer rely on increasing property taxes to pay for services. This practice is not fiscally sound or equitable and as a result, too many families are having difficulty making ends meet. This legislation is an important step in the right direction that will not only cut the State's looming deficit, but also create a fairer system of taxation."
I find the Fair Share Tax Reform Act of 2009 the perfect solution to the tax problems we have and a great way to address flaws in the system that have existed for years. Hopefully, both houses of the New York State Legislature can get behind this bill and give it the support it needs and deserves. |
