By Howard Koplowitz
Most Queens residents will have more money in their pockets come tax time next year after the state Legislature earlier this month approved tax decreases for those making less than $300,000.
The agreement changes the income tax structure and Gov. Andrew Cuomo said the revisions will add $1.9 billion to the state’s coffers.
Under the reforms enacted by the Legislature, those making between $300,000 and $2 million will have a base tax rate of 6.85 percent, up from 6.65 percent.
For those earning $2 million and more, the rate will be 8.82 percent, up from the 6.65 percent base rate but less than the 8.97 percent they were paying under the so-called “millionaire’s tax” surcharge.
The governor said 4.4 million New Yorkers will see tax decreases under the plan, including a $690 million reduction in taxes for the middle class, which was defined as earners making $300,000 or less.
That group had a 6.85 percent base tax rate, but those making between $40,000 and $150,000 will have a rate of 6.45 percent.
Those with an income between $150,000 and $300,000 will see their rate slashed from 6.85 percent to 6.65 percent.
State Assemblyman Mike Miller (D-Woodhaven) said the changes to the tax code were needed.
“This tax code reform is a simple matter of fairness,” Miller said. “Reforming the tax code to support middle-class families is the right thing to do and is the best way to stimulate consumer spending and jump-start the economy. This plan will give relief to the struggling middle class and put New York on the path to fiscal stability.”
State Sen. Joseph Addabbo (D-Howard Beach) also applauded the move, which was approved by the Legislature during a special session called by Cuomo earlier this month.
“I am thankful to have been given an opportunity to give the middle class of this state a long-overdue and certainly needed state income tax break,” Addabbo said. “The restructuring of New York state’s tax code creates a fair and progressive tax system and provides equity to citizens across this city and state.”
Since 2009, those making more than $300,000 were hit with the millionaire’s tax on top of their base tax rate that was anywhere from 7.85 percent to 8.97 percent.
Reach reporter Howard Koplowitz by e-mail at hkoplowitz@cnglocal.com or by phone at 718-260-4573.
