Bill S1008-2011

Relates to increasing income tax rates

Relates to increasing income tax rates on incomes over one million dollars and five million dollars.

Details

Actions

  • Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 5, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S1008

TITLE OF BILL: An act to amend the tax law, in relation to increases in income tax rates on incomes over one million dollars and incomes over five million dollars

PURPOSE OR GENERAL IDEA OF BILL: To provide for a temporary increase of personal income taxes upon New Yorkers earning more than one million dollars annually, and five million dollars annually. Such increase will be a temporary 9.97% bracket for annual incomes over $1,000,000 and a 10.97% bracket for annual incomes over $5,000,000.

SUMMARY OF SPECIFIC PROVISIONS: Section 2 of the bill amends paragraph 1 of subsection (a) of section 601 of the tax law, as added by chapter 57 of the laws of 2009, to provide for two new tax brackets, a bracket for New York taxable incomes over $1,000,000 but less than $5,000,000, and a bracket for incomes over $5,000,000.

Section 3 of the bill renumbers paragraphs 2,3,4,5,6,7,8 and 9 of subsection (b) of section of the tax law.

Section 4 of the bill amends paragraph 1 of subsection (b) of section 601 of the tax law, as added by chapter 57 of the laws of 2009, to provide for two new tax brackets, a bracket for New York taxable incomes over $1,000,000 but less than $5,000,000, and a bracket for incomes over $5,000,000.

Section 5 of the bill renumbers paragraphs 2,3,4,5,6,7,8 and 9 of subsection (c) of section of the tax law.

Section 6 of the bill amends paragraph 1 of subsection (c) of section 601 of the tax law, as added by chapter 57 of the laws of 2009, to provide for two new tax brackets, a bracket for New York taxable incomes over $1,000,000 but less than $5,000,000, and a bracket for incomes over $5,000,000.

Section 7 of the bill sets forth the effective date.

JUSTIFICATION: In 2007, the world economy collapsed, due in part to a collapse of the sub-prime mortgage market. Since then, New York State has had to close record budget deficits in every Executive Budget. Despite significant attempts over the past three years to shrink government, and the extraction of hundreds of millions of dollars in savings from the state agencies, the state university system and community colleges, New York is still facing a significant budget hole in the 2010-2011 Executive Budget.

A new, temporary tax bracket for New York taxable incomes over $1,000,000, and over $5,000,000, will garner up to $1 billion in new revenue annually, absent which, New York have to make further cuts to health care, education, and human services. There are more than 850,000 New Yorkers out of work, and more than 100,000 have lost

their homes. Adding significant cuts to health care and education on top of the more than $1 billion already cut out of the budgets of the state agencies and particularly the human services agencies - would have the practical effect of balancing the budget upon the backs of New York's most vulnerable populations.

PRIOR LEGISLATIVE HISTORY: 2010: S.7791 Referred to Investigations and Government Operations

FISCAL IMPLICATIONS: No cost to the State.

EFFECTIVE DATE: This act will take effect immediately and shall apply to taxable years beginning on or after January 1, 2011.


Text

STATE OF NEW YORK ________________________________________________________________________ 1008 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to increases in income tax rates on incomes over one million dollars and incomes over five million dollars THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraphs 2, 3, 4, 5, 6, 7, 8 and 9 of subsection (a) of section 601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8, 9 and 10. S 2. Paragraph 1 of subsection (a) of section 601 of the tax law, as added by section 1 of part Z-1 of chapter 57 of the laws of 2009, is amended to read as follows: (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TEN AND BEFORE TWO THOUSAND THIRTEEN: IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS: NOT OVER $16,000 4% OF THE NEW YORK TAXABLE INCOME OVER $16,000 BUT NOT OVER $22,000 $640 PLUS 4.5% OF EXCESS OVER $16,000 OVER $22,000 BUT NOT OVER $26,000 $910 PLUS 5.25% OF EXCESS OVER $22,000 OVER $26,000 BUT NOT OVER $40,000 $1,120 PLUS 5.9% OF EXCESS OVER $26,000 OVER $40,000 BUT NOT OVER $300,000 $1,946 PLUS 6.85% OF EXCESS OVER $40,000 OVER $300,000 BUT NOT OVER $500,000 $19,756 PLUS 7.85% OF EXCESS OVER
$300,000 OVER $500,000 BUT NOT OVER $1,000,000 $35,456 PLUS 8.97% OF EXCESS OVER $500,000 OVER $1,000,000 BUT NOT OVER $80,306 PLUS 9.97% OF EXCESS OVER $5,000,000 $1,000,000 OVER $5,000,000 $479,106 PLUS 10.97% OF EXCESS OVER $5,000,000 (2) For taxable years beginning after two thousand eight and before two thousand [twelve] ELEVEN AND FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWELVE: If the New York taxable income is: The tax is: Not over $16,000 4% of the New York taxable income Over $16,000 but not over $22,000 $640 plus 4.5% of excess over $16,000 Over $22,000 but not over $26,000 $910 plus 5.25% of excess over $22,000 Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over $26,000 Over $40,000 but not over $300,000 $1,946 plus 6.85% of excess over $40,000 Over $300,000 but not over $500,000 $19,756 plus 7.85% of excess over $300,000 Over $500,000 $35,456 plus 8.97% of excess over $500,000 S 3. Paragraphs 2, 3, 4, 5, 6, 7, 8 and 9 of subsection (b) of section 601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8, 9 and 10. S 4. Paragraph 1 of subsection (b) of section 601 of the tax law, as added by section 1 of part Z-1 of chapter 57 of the laws of 2009, is amended to read as follows: (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TEN AND BEFORE TWO THOUSAND THIRTEEN: IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS: NOT OVER $11,000 4% OF THE NEW YORK TAXABLE INCOME OVER $11,000 BUT NOT OVER $15,000 $440 PLUS 4.5% OF EXCESS OVER $11,000 OVER $15,000 BUT NOT OVER $17,000 $620 PLUS 5.25% OF EXCESS OVER $15,000 OVER $17,000 BUT NOT OVER $30,000 $725 PLUS 5.9% OF EXCESS OVER $17,000 OVER $30,000 BUT NOT OVER $250,000 $1,492 PLUS 6.85% OF EXCESS OVER $30,000 OVER $250,000 BUT NOT OVER $500,000 $16,562 PLUS 7.85% OF EXCESS OVER $250,000 OVER $500,000 BUT NOT OVER $36,187 PLUS 8.97% OF EXCESS OVER $1,000,000 $500,000 OVER $1,000,000 BUT NOT OVER $81,037 PLUS 9.97% OF EXCESS OVER $5,000,000 $1,000,000 OVER $5,000,000 $479,837 PLUS 10.97% OF EXCESS OVER $5,000,000
(2) For taxable years beginning after two thousand eight and before two thousand [twelve] ELEVEN AND FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWELVE: If the New York taxable income is: The tax is: Not over $11,000 4% of the New York taxable income Over $11,000 but not over $15,000 $440 plus 4.5% of excess over $11,000 Over $15,000 but not over $17,000 $620 plus 5.25% of excess over $15,000 Over $17,000 but not over $30,000 $725 plus 5.9% of excess over $17,000 Over $30,000 but not over $250,000 $1,492 plus 6.85% of excess over $30,000 Over $250,000 but not over $500,000 $16,562 plus 7.85% of excess over $250,000 Over $500,000 $36,187 plus 8.97% of excess over $500,000 S 5. Paragraphs 2, 3, 4, 5, 6, 7, 8 and 9 of subsection (c) of section 601 of the tax law are renumbered paragraphs 3, 4, 5, 6, 7, 8, 9 and 10. S 6. Paragraph 1 of subsection (c) of section 601 of the tax law, as added by section 1 of part Z-1 of chapter 57 of the laws of 2009, is amended to read as follows: (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TEN AND BEFORE TWO THOUSAND THIRTEEN: If the New York taxable income is: The tax is: Not over $8,000 4% of the New York taxable income Over $8,000 but not over $11,000 $320 plus 4.5% of excess over $8,000 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over $11,000 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over $13,000 Over $20,000 but not over $200,000 $973 plus 6.85% of excess over $20,000 Over $200,000 but not over $500,000 $13,303 plus 7.85% of excess over $200,000 OVER $500,000 BUT NOT OVER $36,853 PLUS 8.97% OF EXCESS $1,000,000 OVER $500,000 OVER $1,000,000 BUT NOT OVER $81,703 PLUS 9.99% OF EXCESS OVER $5,000,000 $1,000,000 OVER $5,000,000 $480,503 PLUS 10.97% OF EXCESS OVER $5,000,000 (2) For taxable years beginning after two thousand eight and before two thousand [twelve] ELEVEN AND FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWELVE: If the New York taxable income is: The tax is: Not over $8,000 4% of the New York taxable
income Over $8,000 but not over $11,000 $320 plus 4.5% of excess over $8,000 Over $11,000 but not over $13,000 $455 plus 5.25% of excess over $11,000 Over $13,000 but not over $20,000 $560 plus 5.9% of excess over $13,000 Over $20,000 but not over $200,000 $973 plus 6.85% of excess over $20,000 Over $200,000 but not over $500,000 $13,303 plus 7.85% of excess over $200,000 Over $500,000 $36,853 plus 8.97% of excess over $500,000 S 7. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2011.

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