New York State Bills Could Support Government Programs by Taxing Higher Income People

New York State’s package of bills could help improve government services and create a fairer tax system.

The Invest in Our New York Act aims to ensure that the state’s corporations and ultra-wealthy pay their fair share of taxes. The legislation would direct money toward important programs such as affordable housing, child care and education. One of the bills establishes a capital gains tax.

Isaiah Fenichel, lead organizer for the Hudson Valley group Civic Action New York, said another option would create a fairer tax structure.

“It creates new tax brackets that sort of break down the interest and the amounts that people pay on the way up,” Fenichel explained. “This is to generate more wealth because as it stands now, if you make between $250,000 and a million, you’re taxed at the same rate no matter where you fall on that spectrum.”

Despite widespread support for the bills, the biggest opposition surrounds the question: “What if this pushes wealthy people away from New York?” However, research shows that the working class is leaving the state. The Fiscal Policy Institute estimates that, on average, the savings from lower housing costs in other states are 15 times greater than the tax savings for former New Yorkers.

The legislative package also includes spending priorities on housing, climate change and other areas. Fenichel noted that money from the legislation will help pay for programs such as housing access vouchers and fund assistance. As a new parent, he said child care affordability is another area that needs better funding.

“One of the things we’re advocating for is $1.5 billion to raise wages for New York child care workers,” Fenichel said. “We can bring in more people, hire more child care workers, so more spaces will be open and people can bring more people into class.”

Census data shows that New York State has a high employment rate of child care workers, but their average salary is close to $38,000 per year. MIT’s cost of living calculator shows that the cost of living for one person is over $55,000 per year.

Edwin is a reporter and producer from North Tonawanda, New York. He has previously been featured in the Niagara Gazette and Ithaca Times. Edwin began an early radio internship at WBFO-88.7FM, the NPR affiliate in Buffalo. He graduated from SUNY State College at Buffalo in 2018 with a bachelor’s degree in journalism and in 2022 from Syracuse University with a master’s degree in communications.