Res. No. 694
Resolution calling upon the New York State Legislature to pass, and the Governor to sign, S.1980/A.3690, S.2059/A.3115, and S.2782/A.3193, which would ensure the wealthiest New Yorkers pay their fair share and increase tax revenues for New York State.
By Council Members Hudson, Ossé and Nurse
Whereas, according to the Economic Policy Institute (EPI), New York State (“State”) has the largest wealth inequality among all 50 states, with the top 1% earning on average 44.4 times more than the bottom 99%, about $2,202,480 a year to about $49,617 a year; and
Whereas, according to the EPI, New York County (Manhattan Borough) has the second largest wealth inequality among all American counties, with the top 1% earning on average 113.0 times more than the bottom 99%, about $8,983,154 a year to about $79,528 a year; and
Whereas, according to the EPI, the other four boroughs also have large wealth disparities, with Kings County (Brooklyn Borough) seeing the top 1% earn on average 26.5 time more than the bottom 99%, Richmond County (Staten Island Borough) seeing the top 1% earn on average 13.5 times more than the bottom 99%, Queens County seeing the top 1% earn on average 13.3 times more than the bottom 99%, and Bronx County seeing the top 1% earn on average 11.3 times more than the bottom 99%; and
Whereas, according to New York State Community Action Association (NYSCAA), over 2.5 million State residents live in poverty; and
Whereas, according to Columbia University Center on Poverty and Social Policy and the non-profit Robin Hood, 1.5 million adults and 420,000 children live in poverty in New York City (“City”), and an additional 33% of all City residents have low incomes, defined as incomes between 100% and 200% of the poverty line; and
Whereas, the poverty threshold is continuing to climb, with the threshold being estimated at $40,288 a year for a family of four in 2021, according to the New York City Poverty Measure 2021, and then being estimated at $43,890 a year for a family of four in 2022, according to the Center on Poverty and Social Policy and Columbia University; and
Whereas, according to the Coalition for the Homeless, 250,000 people were homeless at some point in 2019 in the State, and 85% of all homeless people in the State lived in the City, which “remains the epicenter of the worst homelessness crisis since the Great Depression”; and
Whereas, in June 2023, according to the New York Times, more than 100,000 people were living in the City’s homeless shelters, a new record; and
Whereas, according to the Office of the New York State Comptroller (OSC), housing costs, which include rent, property taxes, utilities, and furnishings, make up roughly 40% of total household expenditures for a typical family living in the City; and
Whereas, according to the OSC, 1 million households in the City, or 53%, are rent burdened, meaning they spend more than 30% of their income on rent, and of those 1 million households, approximately 600,000, or 60%, were severely rent burdened, meaning they spend over 50% of their income on rent; and
Whereas, according to a poll conducted by the Sienna College Research Institute on behalf of the Invest in Our New York (IONY) Campaign, 57% of State residents are unsatisfied with the State’s ability to ensure everyone pays their fair share in taxes, and 67% of State residents are in favor of raising taxes on the wealthy; and
Whereas, S.1980/A.3690, sponsored by Senator Brad Hoylman-Sigal and Assemblymember Dr. Anna R. Kelles respectively, was introduced to the New York State Senate (“Senate”) on January 18, 2023 and to the New York State Assembly (“Assembly”) on February 3, 2023; and
Whereas, S.2059/A.3115, sponsored by Senator Robert Jackson and Assemblymember Demond Meeks respectively, was introduced to the Senate on January 18, 2023 and to the Assembly on February 2, 2023, and was originally introduced as S.2622/A.4604 to the Senate on January 22, 2021 and to the Assembly on February 4, 2021; and
Whereas, S.2782/A.3193, sponsored by Senator Jabari Brisport and Assemblymember Michaelle C. Solages respectively, was introduced to the Senate on January 24, 2023 and to the Assembly on February 2, 2023, and was originally introduced as S.3462/A.4643A to the Senate on January 29, 2021 and to the Assembly on February 4, 2021; and
Whereas, S.1980/A.3690 would help alleviate these issues by increasing tax revenue for the State by increasing the corporate tax rate, lowering the “exempt controlled foreign corporations (CFCs) income” from 95% to 50%, raising the percentage of global intangible low-taxed income, reducing the pass-through entity tax rebate, and creating an additional State income tax; and
Whereas, S.2059/A.3115 would alleviate these issues by increasing tax revenue for the State by creating a fair and progressive personal income tax; and
Whereas, S.2782/A.3193 would alleviate these issues by increasing tax revenue for the State by creating an inheritance income tax and tax on received gift income within the personal income tax, providing new rates for the estate tax for decedents dying after April 1, 2021, and providing a tax on gifts sent; and
Whereas, according to the IONY Campaign, education is the great equalizer in the State, with more disadvantaged districts receiving almost $10,000 less in funding per each student than more advantaged districts; and
Whereas, according to the IONY Campaign, because the childcare workforce is in the 98% percentile of the lowest paid workers, with workers being predominately Black women and women of color, and, according to a study conducted by the Massachusetts Institute of Technology (MIT), because attending pre-school leads to an increased likelihood of graduating high school and entering college on-time, creating a well-funded childcare system by using the increased tax funding generated by these three bills would serve to lift the workers and the children they care for out of poverty; and
Whereas, according to the IONY Campaign, making the ultra-wealthy and large corporations pay their fair share will generate new public dollars to invest into our communities and the programs and services that help residents in both the City and the State reach their full potential; now, therefore, be it
Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass, and the Governor to sign, S.1980/A.3690, S.2059/A.3115, and S.2782/A.3193, which will ensure the wealthiest New Yorkers pay their fair share and increase tax revenues for New York State.
LS 18002
12/11/2024
JN