Bill Text: NY A08221 | 2021-2022 | General Assembly | Amended

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Bill Title: Enacts the "Invest in New Yorkers Act" in relation to the effectiveness and fairness of the personal income tax rate by eliminating the state's current tax recapture system which unfairly penalizes people who work and earn more money moving them into a higher tax bracket.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A08221 Detail]

Download: New_York-2021-A08221-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         8221--A

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                     August 25, 2021
                                       ___________

        Introduced  by M. of A. BYRNE -- read once and referred to the Committee
          on Ways and Means  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee

        AN  ACT  in relation to enacting the "Invest in New Yorkers Act"; and to
          amend the tax law, in relation to the effectiveness  and  fairness  of
          the  personal  income  tax rate by eliminating the state's current tax
          recapture system which unfairly penalizes people  who  work  and  earn
          more money moving them into a higher tax bracket

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "Invest in New Yorkers Act".
     3    § 2. The opening paragraph of subsection (d) of section 601 of the tax
     4  law,  as  amended  by  section  1 of part R of chapter 63 of the laws of
     5  2003, is amended to read as follows:
     6    For taxable years beginning after nineteen hundred ninety  and  before
     7  January  first,  two  thousand  twenty-two,  there  is  hereby imposed a
     8  supplemental tax in addition to the tax imposed under  subsections  (a),
     9  (b)  and  (c) of this section for the purpose of recapturing the benefit
    10  of the tax tables contained in such subsections or section  six  hundred
    11  ninety-nine  of  this  article, as the case may be. The supplemental tax
    12  shall be an amount equal to the sum of the tax table benefits  in  para-
    13  graphs one, two and three of this subsection multiplied by their respec-
    14  tive  fractions in such paragraphs provided, however, that paragraph two
    15  of this subsection shall not apply to taxpayers that are not subject  to
    16  the second highest rate of tax.
    17    §  3.  The opening paragraph of subsection (d-1) of section 601 of the
    18  tax law, as amended by section 4 of part TT of chapter 60 of the laws of
    19  2016, is amended to read as follows:
    20    Notwithstanding the provisions of subsection (d) of this section,  for
    21  taxable  years  beginning  after  two thousand eleven and before January

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09688-04-1
        A. 8221--A                          2

     1  first, two thousand twenty-two, there is hereby imposed  a  supplemental
     2  tax in addition to the tax imposed under subsections (a), (b) and (c) of
     3  this  section  for  the  purpose  of  recapturing the benefit of the tax
     4  tables  contained  in  such subsections. During these taxable years, any
     5  reference in this chapter to subsection (d) of  this  section  shall  be
     6  read as a reference to this subsection.
     7    §  4.  The  opening  paragraph  of  paragraph 1 of subsection (d-1) of
     8  section 601 of the tax law, as amended by section 5 of part TT of  chap-
     9  ter 60 of the laws of 2016, is amended to read as follows:
    10    For  resident  married  individuals  filing joint returns and resident
    11  surviving spouses, the supplemental tax shall be an amount equal to  the
    12  sum  of  the tax table benefits described in subparagraphs (A), (B), (C)
    13  and (D) of this paragraph multiplied by their  respective  fractions  in
    14  such subparagraphs. Furthermore, in making the calculations described in
    15  these  subparagraphs in taxable years beginning after tax year two thou-
    16  sand seventeen and before January first, two  thousand  twenty-two,  the
    17  applicable  tax  rates specified in subparagraph (B) of paragraph one of
    18  subsection (a) of this section shall be substituted for the rates refer-
    19  enced in these subparagraphs.
    20    § 5. Subparagraph (D) of paragraph 1 of subsection  (d-1)  of  section
    21  601  of  the tax law, as amended by section 4 of part A of chapter 59 of
    22  the laws of 2021, is amended to read as follows:
    23    (D) The tax table benefit is the difference between (i) the amount  of
    24  taxable income set forth in the tax table in paragraph one of subsection
    25  (a)  of this section not subject to the 8.82 percent rate of tax for the
    26  taxable year multiplied by such rate and (ii) the dollar denominated tax
    27  for such amount of taxable income set forth in the tax table  applicable
    28  to  the  taxable year in paragraph one of subsection (a) of this section
    29  less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
    30  of this paragraph. The fraction for this  subparagraph  is  computed  as
    31  follows:  the  numerator  is the lesser of fifty thousand dollars or the
    32  excess of New York adjusted gross income for the taxable year  over  two
    33  million  dollars  and  the  denominator  is fifty thousand dollars. This
    34  subparagraph shall apply only to taxable years  beginning  on  or  after
    35  January  first,  two thousand twelve and before January first, two thou-
    36  sand [twenty-one and for tax years beginning on or after January  first,
    37  two thousand twenty-eight] twenty-two.
    38    §  6.  Subparagraph  (E) of paragraph 1 of subsection (d-1) of section
    39  601 of the tax law, as amended by section 4 of part A of chapter  59  of
    40  the laws of 2021, is amended to read as follows:
    41    (E)  The tax table benefit is the difference between (i) the amount of
    42  taxable income set forth in the tax table in paragraph one of subsection
    43  (a) of this section not subject to the 9.65 percent rate of tax for  the
    44  taxable year multiplied by such rate and (ii) the dollar denominated tax
    45  for  such amount of taxable income set forth in the tax table applicable
    46  to the taxable year in paragraph one of subsection (a) of  this  section
    47  less  the  sum  of the tax table benefits in subparagraphs (A), (B), and
    48  (C) of this paragraph. The fraction for this subparagraph is computed as
    49  follows: the numerator is the lesser of fifty thousand dollars or excess
    50  of New York adjusted gross income for the taxable year over two  million
    51  dollars and the denominator is fifty thousand dollars. This subparagraph
    52  shall  apply  only  to  the  taxable years beginning on or after January
    53  first, two thousand twenty-one and before January  first,  two  thousand
    54  [twenty-eight] twenty-two.
        A. 8221--A                          3

     1    §  7.  Subparagraph  (F) of paragraph 1 of subsection (d-1) of section
     2  601 of the tax law, as added by section 4 of part A of chapter 59 of the
     3  laws of 2021, is amended to read as follows:
     4    (F)  The tax table benefit is the difference between (i) the amount of
     5  taxable income set forth in the tax table in paragraph one of subsection
     6  (a) of this section not subject to the 10.30 percent rate of tax for the
     7  taxable year multiplied by such rate and (ii) the dollar denominated tax
     8  for such amount of taxable income set forth in the tax table  applicable
     9  to  the  taxable year in paragraph one of subsection (a) of this section
    10  less the sum of the tax table benefits in subparagraphs  (A),  (B),  (C)
    11  and  (E)  of  this  paragraph.  The  fraction  for  this subparagraph is
    12  computed as follows: the numerator  is  the  lesser  of  fifty  thousand
    13  dollars or excess of New York adjusted gross income for the taxable year
    14  over five million dollars and the denominator is fifty thousand dollars.
    15  This  subparagraph shall apply only to the taxable years beginning on or
    16  after January first, two thousand twenty-one and before  January  first,
    17  two thousand [twenty-eight] twenty-two.
    18    §  8.  Subparagraph  (G) of paragraph 1 of subsection (d-1) of section
    19  601 of the tax law, as added by section 4 of part A of chapter 59 of the
    20  laws of 2021, is amended to read as follows:
    21    (G) The tax table benefit is the difference between (i) the amount  of
    22  taxable income set forth in the tax table in paragraph one of subsection
    23  (a) of this section not subject to the 10.90 percent rate of tax for the
    24  taxable year multiplied by such rate and (ii) the dollar denominated tax
    25  for  such amount of taxable income set forth in the tax table applicable
    26  to the taxable year in paragraph one of subsection (a) of  this  section
    27  less  the  sum of the tax table benefits in subparagraphs (A), (B), (C),
    28  (E) and (F) of this paragraph. The fraction  for  this  subparagraph  is
    29  computed  as  follows:  the  numerator  is  the lesser of fifty thousand
    30  dollars or excess of New York adjusted gross income for the taxable year
    31  over twenty-five million dollars and the denominator is  fifty  thousand
    32  dollars.  This subparagraph shall apply only to the taxable years begin-
    33  ning on or after January first, two thousand twenty-one and before Janu-
    34  ary first, two thousand [twenty-eight] twenty-two.
    35    § 9. The opening paragraph of  paragraph  2  of  subsection  (d-1)  of
    36  section  601 of the tax law, as amended by section 6 of part TT of chap-
    37  ter 60 of the laws of 2016, is amended to read as follows:
    38    For resident heads of households, the supplemental  tax  shall  be  an
    39  amount  equal to the sum of the tax table benefits described in subpara-
    40  graphs (A), (B) and (C) of this paragraph multiplied by their respective
    41  fractions in such subparagraphs. Furthermore, in making the calculations
    42  described in these subparagraphs in taxable years  beginning  after  tax
    43  year two thousand seventeen and before January first, two thousand twen-
    44  ty-two,  the applicable tax rates specified in subparagraph (B) of para-
    45  graph one of subsection (b) of this section shall be substituted for the
    46  rates referenced in these subparagraphs.
    47    § 10. Subparagraph (C) of paragraph 2 of subsection (d-1)  of  section
    48  601  of  the tax law, as amended by section 5 of part A of chapter 59 of
    49  the laws of 2021, is amended to read as follows:
    50    (C) The tax table benefit is the difference between (i) the amount  of
    51  taxable income set forth in the tax table in paragraph one of subsection
    52  (b)  of this section not subject to the 8.82 percent rate of tax for the
    53  taxable year multiplied by such rate and (ii) the dollar denominated tax
    54  for such amount of taxable income set forth in the tax table  applicable
    55  to  the  taxable year in paragraph one of subsection (b) of this section
    56  less the sum of the tax table benefits in subparagraphs (A) and  (B)  of
        A. 8221--A                          4

     1  this  paragraph.  The  fraction  for  this  subparagraph  is computed as
     2  follows: the numerator is the lesser of fifty thousand  dollars  or  the
     3  excess  of  New York adjusted gross income for the taxable year over one
     4  million five hundred thousand dollars and the denominator is fifty thou-
     5  sand dollars. This subparagraph shall apply only to taxable years begin-
     6  ning  on  or after January first, two thousand twelve and before January
     7  first, two thousand [twenty-one and for tax years beginning on or  after
     8  January first, two thousand twenty-eight] twenty-two.
     9    §  11. Subparagraph  (D) of paragraph 2 of subsection (d-1) of section
    10  601 of the tax law, as amended by section 5 of part A of chapter  59  of
    11  the laws of 2021, is amended to read as follows:
    12    (D) The tax table benefit is the difference between (i) the amount  of
    13  taxable income set forth in the tax table in paragraph one of subsection
    14  (a)  of this section not subject to the 9.65 percent rate of tax for the
    15  taxable year multiplied by such rate and (ii) the dollar denominated tax
    16  for such amount of taxable income set forth in the tax table  applicable
    17  to  the  taxable year in paragraph one of subsection (a) of this section
    18  less the sum of the tax table benefits in subparagraphs (A) and  (B)  of
    19  this  paragraph.  The  fraction  for  this  subparagraph  is computed as
    20  follows: the numerator is the lesser of fifty thousand dollars or excess
    21  of New York adjusted gross income for the taxable year over one  million
    22  five  hundred  thousand  dollars  and  the denominator is fifty thousand
    23  dollars. This subparagraph shall apply only to the taxable years  begin-
    24  ning on or after January first, two thousand twenty-one and before Janu-
    25  ary first, two thousand [twenty-eight] twenty-two.
    26    §  12.  Subparagraph (E) of paragraph 2 of subsection (d-1) of section
    27  601 of the tax law, as added by section 5 of part A of chapter 59 of the
    28  laws of 2021, is amended to read as follows:
    29    (E) The tax table benefit is the difference between (i) the amount  of
    30  taxable income set forth in the tax table in paragraph one of subsection
    31  (a) of this section not subject to the 10.30 percent rate of tax for the
    32  taxable year multiplied by such rate and (ii) the dollar denominated tax
    33  for  such amount of taxable income set forth in the tax table applicable
    34  to the taxable year in paragraph one of subsection (a) of  this  section
    35  less the sum of the tax table benefits in subparagraphs (A), (B) and (D)
    36  of  this  paragraph.  The  fraction for this subparagraph is computed as
    37  follows: the numerator is the lesser of fifty thousand dollars or excess
    38  of New York adjusted gross income for the taxable year over five million
    39  dollars and the denominator is fifty thousand dollars. This subparagraph
    40  shall apply only to the taxable years  beginning  on  or  after  January
    41  first,  two  thousand  twenty-one and before January first, two thousand
    42  [twenty-eight] twenty-two.
    43    § 13. Subparagraph (F) of paragraph 2 of subsection (d-1)  of  section
    44  601 of the tax law, as added by section 5 of part A of chapter 59 of the
    45  laws of 2021, is amended to read as follows:
    46    (F)  The tax table benefit is the difference between (i) the amount of
    47  taxable income set forth in the tax table in paragraph one of subsection
    48  (a) of this section not subject to the 10.90 percent rate of tax for the
    49  taxable year multiplied by such rate and (ii) the dollar denominated tax
    50  for such amount of taxable income set forth in the tax table  applicable
    51  to  the  taxable year in paragraph one of subsection (a) of this section
    52  less the sum of the tax table benefits in subparagraphs  (A),  (B),  (D)
    53  and  (E)  of  this  paragraph.  The  fraction  for  this subparagraph is
    54  computed as follows: the numerator  is  the  lesser  of  fifty  thousand
    55  dollars or excess of New York adjusted gross income for the taxable year
    56  over  twenty-five  million dollars and the denominator is fifty thousand
        A. 8221--A                          5

     1  dollars. This subparagraph shall apply only to the taxable years  begin-
     2  ning on or after January first, two thousand twenty-one and before Janu-
     3  ary first, two thousand [twenty-eight] twenty-two.
     4    §  14.  The  opening  paragraph  of paragraph 3 of subsection (d-1) of
     5  section 601 of the tax law, as amended by section 7 of part TT of  chap-
     6  ter 60 of the laws of 2016, is amended to read as follows:
     7    For  resident  unmarried  individuals,  resident  married  individuals
     8  filing separate returns and resident estates  and  trusts,  the  supple-
     9  mental tax shall be an amount equal to the sum of the tax table benefits
    10  described in subparagraphs (A), (B) and (C) of this paragraph multiplied
    11  by  their  respective  fractions in such subparagraphs.  Furthermore, in
    12  making the calculations described  in  these  subparagraphs  in  taxable
    13  years beginning after tax year two thousand seventeen and before January
    14  first,  two  thousand  twenty-one, the applicable tax rates specified in
    15  subparagraph (B) of paragraph one of  subsection  (c)  of  this  section
    16  shall be substituted for the rates referenced in these subparagraphs.
    17    §  15.  Subparagraph (C) of paragraph 3 of subsection (d-1) of section
    18  601 of the tax law, as amended by section 6 of part A of chapter  59  of
    19  the laws of 2021, is amended to read as follows:
    20    (C)  The tax table benefit is the difference between (i) the amount of
    21  taxable income set forth in the tax table in paragraph one of subsection
    22  (c) of this section not subject to the 8.82 percent rate of tax for  the
    23  taxable year multiplied by such rate and (ii) the dollar denominated tax
    24  for  such amount of taxable income set forth in the tax table applicable
    25  to the taxable year in paragraph one of subsection (c) of  this  section
    26  less  the  sum of the tax table benefits in subparagraphs (A) and (B) of
    27  this paragraph. The  fraction  for  this  subparagraph  is  computed  as
    28  follows:  the  numerator  is the lesser of fifty thousand dollars or the
    29  excess of New York adjusted gross income for the taxable year  over  one
    30  million  dollars  and  the  denominator  is fifty thousand dollars. This
    31  subparagraph shall apply only to taxable years  beginning  on  or  after
    32  January  first,  two thousand twelve and before January first, two thou-
    33  sand [twenty-one and for tax years beginning on or after January  first,
    34  two thousand twenty-eight] twenty-two.
    35    §  16.  Subparagraph (D) of paragraph 3 of subsection (d-1) of section
    36  601 of the tax law, as amended by section 6 of part A of chapter  59  of
    37  the laws of 2021, is amended to read as follows:
    38    (D)  The tax table benefit is the difference between (i) the amount of
    39  taxable income set forth in the tax table in paragraph one of subsection
    40  (a) of this section not subject to the 9.65 percent rate of tax for  the
    41  taxable year multiplied by such rate and (ii) the dollar denominated tax
    42  for  such amount of taxable income set forth in the tax table applicable
    43  to the taxable year in paragraph one of subsection (a) of  this  section
    44  less  the  sum of the tax table benefits in subparagraphs (A) and (B) of
    45  this paragraph. The  fraction  for  this  subparagraph  is  computed  as
    46  follows: the numerator is the lesser of fifty thousand dollars or excess
    47  of  New York adjusted gross income for the taxable year over one million
    48  five hundred thousand dollars and  the  denominator  is  fifty  thousand
    49  dollars.  This subparagraph shall apply only to the taxable years begin-
    50  ning on or after January first, two thousand twenty-one and before Janu-
    51  ary first, two thousand [twenty-eight] twenty-two.
    52    § 17. Subparagraph (E) of paragraph 3 of subsection (d-1)  of  section
    53  601 of the tax law, as added by section 6 of part A of chapter 59 of the
    54  laws of 2021, is amended to read as follows:
    55    (E)  The tax table benefit is the difference between (i) the amount of
    56  taxable income set forth in the tax table in paragraph one of subsection
        A. 8221--A                          6

     1  (a) of this section not subject to the 10.30 percent rate of tax for the
     2  taxable year multiplied by such rate and (ii) the dollar denominated tax
     3  for such amount of taxable income set forth in the tax table  applicable
     4  to  the  taxable year in paragraph one of subsection (a) of this section
     5  less the sum of the tax table benefits in subparagraphs (A), (B) and (D)
     6  of this paragraph. The fraction for this  subparagraph  is  computed  as
     7  follows: the numerator is the lesser of fifty thousand dollars or excess
     8  of New York adjusted gross income for the taxable year over five million
     9  dollars and the denominator is fifty thousand dollars. This subparagraph
    10  shall  apply  only  to  the  taxable years beginning on or after January
    11  first, two thousand twenty-one and before January  first,  two  thousand
    12  [twenty-eight] twenty-two.
    13    §  18.  Subparagraph (F) of paragraph 3 of subsection (d-1) of section
    14  601 of the tax law, as added by section 6 of part A of chapter 59 of the
    15  laws of 2021, is amended to read as follows:
    16    (F) The tax table benefit is the difference between (i) the amount  of
    17  taxable income set forth in the tax table in paragraph one of subsection
    18  (a) of this section not subject to the 10.90 percent rate of tax for the
    19  taxable year multiplied by such rate and (ii) the dollar denominated tax
    20  for  such amount of taxable income set forth in the tax table applicable
    21  to the taxable year in paragraph one of subsection (a) of  this  section
    22  less  the  sum  of the tax table benefits in subparagraphs (A), (B), (D)
    23  and (E) of  this  paragraph.  The  fraction  for  this  subparagraph  is
    24  computed  as  follows:  the  numerator  is  the lesser of fifty thousand
    25  dollars or excess of New York adjusted gross income for the taxable year
    26  over twenty-five million dollars and the denominator is  fifty  thousand
    27  dollars.  This subparagraph shall apply only to the taxable years begin-
    28  ning on or after January first, two thousand twenty-one and before Janu-
    29  ary first, two thousand [twenty-eight] twenty-two.
    30    § 19. This act shall take effect immediately.