Shockingly, we could be going the other way. (That’s sarcasm, if you can’t tell). Late last week, Assemblyman Harvey Epstein introduced Assembly Bill A08532 to amend the tax law to raise personal income tax rates of the super-rich and direct revenue generated from those tax increases to be deposited to the credit of the New York City Housing Authority and the Division of Housing and Community Renewal. Putting the proposed increases into a simplified perspective, New York now has eight marginal tax brackets, ranging from 4% (the lowest New York tax bracket) to 8.82% (the highest New York tax bracket). Each marginal rate only applies to earnings within the applicable marginal tax bracket. Assemblyman Epstein’s proposed rates includes four new levels of tax rates, as follows:
- Taxable income over $1,000,000 but not over $5,000,000: 8.82% (this is the highest rate under current law)
- Taxable income over $5,000,000 but not over $10,000,000: 9.32%
- Taxable income over $10,000,000 but not over $100,000,000: 9.82%
- Taxable income over $100,000,000: 10.32%
An identical companion bill, S04511-A, was introduced by New York State Senator Julia Salazar in March 2019 and both call for the new rates to be effective in 2020. But nothing will happen on this until early 2020, when the Governor proposes his new budget and issues around new taxes and new tax rates pop up.
