State Sen. Kristen Gonzalez has welcomed the state Senate’s passage of its one-house budget resolution, which includes plans to raise the tax rate on New York’s highest earners and raise the state’s top corporate tax rate from 7.25% to 9%.
The budget resolution, which signal the start of budget negotiations between the Senate, Assembly and Gov. Kathy Hochul, was released late Monday night and outlines the Senate’s priorities ahead of the Apil 1 deadline.
The Senate’s proposals include a 0.5% increase on personal incomes for the top two tax brackets, targeting individuals earning $5 million a year or more, with the Senate estimating that such a move could create an addition $1.1 billion in revenue per year.
The Senate has also proposed raising the state’s top corporate rate to 9% for companies making over $5 million a year as well as reducing the state’s pass-through entity tax credit from 100% to 90%. The Senate estimates that the measures would create $1.8 billion in revenue.
Senate Majority Leader Andrea Stewart-Cousins on March 10 pledged that the Senate will “earnestly and honestly push” for tax increases on the state’s highest earners. Hochul did not include tax hikes in her executive budget proposals and expressed concerns earlier this week that tax increases could drive wealthy residents out of the state.
Gonzalez, however, welcomed the Senate’s attempts to tax the wealthiest residents and businesses in the state.
“New Yorkers deserve an economy that asks the wealthiest corporations and individuals to pay their fair share so we can invest in basic services and address the needs of our communities,” Gonzalez said in a statement.
“This Senate one-house budget resolution takes meaningful steps toward a more equitable economy while making forward-looking investments in healthcare, universal childcare, and food security that will assist New Yorkers now and prepare them for the future.”
The Senate’s one-house budget also includes several of Gonzalez’s top funding and legislative priorities for the upcoming fiscal year, including a $4 million Gender Affirming Care Fund that would allow transgender New Yorks to afford essential healthcare services threatened by federal Medicaid rules.
The budget also includes proposed legislation to improve election security infrastructure by establishing a program within the state board of elections to help local boards mitigate cybersecurity threats. Gonzalez’s AI Literaly Act, meanwhile, aims to expand equitable access to AI education in New York through targeted grants.
“As artificial intelligence continues to reshape our economy, we must make sure New Yorkers are prepared to lead in the industries of the future,” Gonzalez said. “Investing in AI literacy ensures we can innovate and that our workforce remains competitive as these technologies are developed and used responsibly.”
