Rallies to raise taxes on the rich held at four New York city halls

ALBANY, N.Y (NEXSTAR) — Citizen Action of New York, lawmakers, and advocates held a rally on Thursday, October 17 at Albany City Hall. It was part of a coordinated statewide push for the Invest in Our New York (IONY) Act.

Besides the capital, they held rallies in Poughkeepsie, Buffalo, and New York City. Campaigners aimed to introduce local resolutions—in those four cities and Newburgh—to pass five bills in the state legislature. They are:

S2162/A2576, which adds a tax on income earned from capital gains and stock dividends, balancing the federal approach of taxing wages at much steeper rates than long-term investments. Rates would be phased in gradually, with joint filers making over $500,000 taxed at 7.5%. Those making over a million a year in the stock market would be taxed at 15% on those earnings. The language of the bill includes a projected annual income of $7 billion, though literature from the campaign theorized it would raise over $12 billion.

S1980/A3690 would tax big business and pass-through income—company profits that go directly to owners or investors—to undercut 2017's federal Tax Cuts and Jobs Act. The law raises tax rates on companies making over $2.5 million, with those making over $20 million taxed at 14%. It also lowers the state pass-through tax rebate from 100% to 75%. It would increase taxes on profit shifted to other countries and reduce which deductions businesses can take. The IONY campaign argued that it would raise over $7 billion each year.

S2059/A3115 raises income taxes on high earners, but not on the middle- or working-class. Tax rates would start at 4% if you make under $17,150 and rise alongside income. For married filers who make between $500,000 and $700,000, the tax rate is 7.5%. Between $700,000 and $900,000, you'd pay 8%. And from $900,000 and $1 million, it's 9%. Incomes between $1 million and $2 million are taxed at 10%. Those making over $20 million would see tax rates as high as 24%. According to IONY, the bill could raise over $21 billion a year.

S1570/A3252 would tax billionaires on their yearly capital gains, even if they haven’t sold the assets. It includes tax adjustments in case those gains were taxed already outside of New York. The law could collect over $23 billion in its first year, according to legislators, and the IONY campaign said it would bring over a billion to state coffers each year thereafter.

S2782/A3193 would limit how much wealth can be passed on without being taxed by changing the rules for inheritance, estates, and gifts. Aiming to raise $8 billion annually, it would exempt education, medical expenses, retirement accounts, and family farms, and would offer credits to prevent double-taxing in other states. Inheritance tax rates start at 0% for the first $250,000 and go up to 50% for over $10 million. Gifts are taxed separately, with no tax if it's up to $50,000 and as much as 50% if it's over $2 million. Estates under $750,000 wouldn't be taxed, but larger ones could be taxed up to 50%. IONY said it would raise $4 billion per year.

Noting intense income disparities statewide, IONY promotes reforms to create a fairer tax code. Members of the group want taxes on windfalls and disposable income to fund housing, childcare, healthcare, and public education. They hope a progressive tax code will lift millions of low-income and working-class New Yorkers out of poverty.

But, "This isn’t about punishing the wealthy," said Ashely Hardy, representing Citizen Action of New York in Buffalo. "It’s about fairness!"

And State Sen. Robert Jackson—a Democrat who represents Manhattan, chairs the Civil Service and Pensions Committee, and sponsored Senate Bill S2059—appeared at the rally at New York City Hall. He said, "Let us be remembered as the builders of a future that not only balances our budget but enriches our community, securing prosperity for every generation to come."

IONY commissioned a Siena Poll in January on raising taxes. Sampling 808 registered voters, it found that 67% approve tax hikes for the highest 5% of New York's earners and corporate profits. However, nearly half also believe that doing so would cause those earners to leave the state.

In addition to Citizen Actions, representatives from Open Buffalo, the Alliance for Quality Education, Make the Road New York, VOCAL-NY, and Community Voices Heard took part in the rallies.