By BRENDAN SCOTT
Posted: 3:52 am
August 20, 2008
ALBANY - Assembly Democrats yesterday passed the "millionaire's tax" to raise billions in new revenues, but the GOP-controlled Senate shelved the measure.
The bill - touted by Assembly Speaker Sheldon Silver and passed by his chamber, 118-24 - would raise $2.6 billion by adding two new tax brackets for New Yorkers making more than $1 million a year. It would raise the income-tax rate from 6.85 percent to 7.85 percent for New Yorkers who earn more than $1 million, and boost from 6.85 percent to 8.6 percent the tax rate for people earning more than $5 million.
Critics of the measure warn it would drive executives and other wealthy New Yorkers out of the state and could spur companies to relocate out of the city.
Under Silver's plan, some of the additional revenues would have paid for a new property-tax relief program for poor and middle-income homeowners.
Gov. Paterson said he would not support a millionaire's tax unless the state's fiscal picture deteriorates further.
Senate Majority Leader Dean Skelos (R-LI) ruled out tax hikes altogether.
"We're not going to do any taxes," Skelos said. "This is about controlling government spending, not increasing taxes in New York state and making it less competitive, quite honestly, than it is right now."
