BUSINESS

New York Millionaires Ask For A Tax Hike To Address Poverty, Fix Roads

03/21/2016 05:36 EDT | Updated 03/22/2017 05:12 EDT
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NEW YORK, NY - MARCH 17: New York governor Andrew Cuomo marches in the annual St. Patrick's Day parade, one of the largest and oldest in the world on March 17, 2016 in New York City. Now that a ban on openly gay groups has been dropped, Mayor de Blasio is attending the parade for the first time since he became mayor in 2014. The parade goes up Fifth Avenue ending at East 79th Street and will draw an estimated 2 million spectators along its 35-block stretch. (Photo by Spencer Platt/Getty Images)
ALBANY, N.Y. — More than 40 millionaires, including members of the Rockefeller and Disney families, are asking to have their taxes raised to help address poverty and rebuild failing infrastructure.

The millionaires wrote a letter to Democratic Gov. Andrew Cuomo and top New York lawmakers proposing new, higher tax rates for the top 1 per cent of earners in the state. The letter, a copy of which was given to The Associated Press, says additional revenue is needed to address child poverty, homelessness and aging bridges, tunnels, water pipes and roads.

"As New Yorkers who have contributed to and benefited from the economic vibrancy of our state, we have both the ability and the responsibility to pay our fair share," the letter states. "We can well afford to pay our current taxes, and we can afford to pay even more."

abigail disney

Abigail Disney, grand-daughter of Walt Disney's brother, Roy O. Disney, is among the signatories of a letter to Gov. Andrew Cuomo, asking him to raise taxes on New York's wealthy. Disney is seen here in February, 2016, accepting a Woman of the Year award at the 17th Annual Women's Image Awards, Los Angeles.

Those signing the letter include Abigail Disney, Leo Hindery and Steven C. Rockefeller. The tax plan, known as the one-per cent tax plan, was worked out in conjunction with the Fiscal Policy Institute, a left-leaning economic think-tank .

"As a businessman and philanthropist and as a citizen of New York state, I believe we need to invest in our people and our infrastructure," Hindery, the managing partner of InterMedia Partners, a media industry private equity fund, said in a statement accompanying the letter. "The one-per cent tax plan makes it possible to make these investments, and simply asks people like me to continue to pay a higher tax rate, as we should."

The one-per cent plan would create new, higher tax rates for those making $665,000 or more.

Currently, single filers making more than $1,062,000 pay the state's top rate of 8.82 per cent. Under the one-per cent plan, the 8.82 rate would apply to anyone making $1 million to $2 million, and higher rates of 9.35 per cent, 9.65 per cent and 9.99 per cent would apply to those making $2 million to $10 million, $10 million to $100 million and more than $100 million, respectively.

Their proposal faces significant political obstacles in the state Legislature. While the Democratic majority in the Assembly has its own plan to increase taxes on millionaires, the Republican-led Senate opposes the idea. Lawmakers are now negotiating the details of the state budget and hope to have a deal in place by April 1.

An existing, lower tax on millionaires is set to expire next year.

"Whether it's income taxes, property taxes, business taxes, user fees, or tolls, we don't support raising taxes or asking hard-working New Yorkers to dig deeper into their pockets to pay more," Senate Leader John Flanagan, a Long Island Republican, said last month after Assembly Speaker Carl Heastie, a Democrat, released his millionaire tax plan.

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