Where The Rich Live (Updated)
As the pro-millionaire’s tax forces make a last-ditch effort to get the governor and Senate Republicans to agree to the Assembly Democrats’ proposal for a “true” PIT increase on the state’s wealthiest residents, NYSUT is forwarding around data on how senators’ constituents would be impacted.
A report by the NYC-based and labor-backed Center for Working Families overlaid state income tax data on top of Senate Districts and found fewer than four percent of residents in 29 of the 32 districts are currently being impacted by the income tax surcharge, which kicks in at $200,000 for individuals and $300,000 for couples.
That percentage would drop under the Assembly Democrats plan to boost the threshold to $1 million, making the tax actually live up to its name, and only for one year past the sunset date. So far, however, this idea doesn’t seem to have much traction with either Gov. Andrew Cuomo or Senate Majority Leader Dean Skelos.
Not surprisingly, the district with the highest percentage of well-to-do residents is the
29th 26th, located on Manhattan’s tony Upper East Side (home to Mayor Bloomberg and former Gov. Eliot Spitzer, just to name two). About 10.5 percent of the tax returns filed in 2005 came from people who reported earning $250,000 or more.
Of course, that was pre-economic downturn and pre-PIT hike, so it’s unclear 1) whose circumstances have changed, and 2) who might have moved out since then.
The so-called “silk stocking” district is represented by Sen. Liz Krueger, a Democrat who supports the millionaire’s tax. UPDATE: Krueger’s office e-mailed a statement, which appears after the jump.
There’s an Assembly district-by-district breakdown, too.
“Given the fact that the Feds decided to continue the Bush-era high income tax cuts, is it really necessary to give the wealthiest New Yorkers a State tax cut too?” Krueger said.
“We’re looking at a budget that will cut down to the bone vital services to the poorest New Yorkers, and yet we’re rejecting a revenue stream from a group that is already benefiting from Federal tax breaks.”
“I would have far preferred that the Federal government do the right thing with tax policy, which would have avoided the threat of ‘border wars’ over marginal income tax rates, but I cannot believe that this tax would lead to an exodus of our state’s millionaires.”
“While I have not directly asked Michael Bloomberg and former Governor Elliot Spitzer their opinion on the continuation of the PIT supplement for millionaires, I would be very surprised if they, or any fellow millionaires they know, would leave New York over marginal changes in their PIT rates.”
|Print article||This entry was posted by Liz Benjamin on March 23, 2011 at 9:20 am, and is filed under Labor, Millionaire's Tax, Uncategorized. Follow any responses to this post through RSS 2.0. Both comments and pings are currently closed.|