Bill Text: NY A10120 | 2019-2020 | General Assembly | Introduced

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Bill Title: Imposes a surcharge on taxpayers in an amount equal to the disparity between federal taxation rates that apply to income derived from labor and income derived from capital gains.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced - Dead) 2020-03-12 - referred to ways and means [A10120 Detail]

Download: New_York-2019-A10120-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10120

                   IN ASSEMBLY

                                     March 12, 2020
                                       ___________

        Introduced by M. of A. KIM -- read once and referred to the Committee on
          Ways and Means

        AN  ACT  to amend the tax law, in relation to the taxation of investment
          income

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

     1    Section 1. Legislative intent. The legislature finds that the state of
     2  New  York  taxes  income  derived from capital gains at the same rate as
     3  income derived from labor and, like most other states,  does  not  offer
     4  preferential  tax  rates  for  income  derived  from  capital  gains, as
     5  compared to the tax rates for income derived  from  labor.  Whereas  the
     6  federal  government  currently  taxes  long term capital gains at a rate
     7  that is substantially lower than the rate of taxation  that  applies  to
     8  income  from  labor. The people of the state of New York wish to correct
     9  for the imbalance of taxation rates on long term capital gains and labor
    10  at the federal level unless and until the federal  government  equalizes
    11  these  rates.  It  is the intent of the legislature that this act amends
    12  New York's tax law to provide needed revenue  through  the  taxation  of
    13  investment income from wealthy individuals.
    14    § 2. Subsection (c) of section 612 of the tax law is amended by adding
    15  a new paragraph 43 to read as follows:
    16    (43)  (a)  For taxable years commencing on or after January first, two
    17  thousand twenty, the department shall conduct an annual review to deter-
    18  mine the disparity between federal income tax rates on  ordinary  income
    19  and  federal  income tax rates on capital gains, as well as the types of
    20  income taxed at capital gains rates, and shall publish its findings. For
    21  taxable years commencing on or after January first, two  thousand  twen-
    22  ty-one,  there  is  imposed a surcharge on the share of a taxpayer's New
    23  York taxable income that is taxed at preferential federal capital  gains
    24  rates  in an amount equal to the difference between the federal ordinary
    25  income tax rate and the federal capital gains tax rate for such  taxpay-
    26  er,  based  on  the  brackets in section 1 of the internal revenue code.
    27  The surcharge shall be in addition to any other tax,  fee  or  surcharge
    28  for which the taxpayer is liable.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15388-02-0
        A. 10120                            2

     1    (b)  Each  taxpayer  subject to the surcharge pursuant to subparagraph
     2  (a) of this paragraph shall file a return with the  department  in  such
     3  form  and  containing  such information as the department may prescribe.
     4  Such return shall accurately set forth the amount of the net gain calcu-
     5  lated  pursuant  to subparagraph (a) of this paragraph for the preceding
     6  taxable year and the amount of the taxpayer's  surcharge  liability  for
     7  such  year.    A person required to file a return shall, without assess-
     8  ment, notice or demand, pay any surcharge due thereon to the  department
     9  on  or before the date specified in state law, determined without regard
    10  to any extension of time for filing the return.
    11    (c) If any person fails to pay the amount of  the  surcharge  reported
    12  due  on  a  return  within  the time specified, there shall be imposed a
    13  penalty equal to twenty percent of such  amount  due  and  unpaid.  Such
    14  amount shall bear interest at the rate of two percent per month or frac-
    15  tion  thereof,  from  the  due  date of such surcharge until the date of
    16  payment.
    17    (d) The department may adopt rules and regulations  to  implement  the
    18  provisions of this section.
    19    (e)  At the close of each fiscal year the comptroller is authorized to
    20  record as revenue for such fiscal  year  the  amount  of  the  surcharge
    21  imposed  under  the provisions of this paragraph that is received by the
    22  department.
    23    § 3. This act shall take effect immediately.