S T A T E O F N E W Y O R K
________________________________________________________________________
8221--A
2021-2022 Regular Sessions
I N A S S E M B L Y
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:
Section 1. Short title. This act shall be known and may be cited as
the "Invest in New Yorkers Act".
§ 2. The opening paragraph of subsection (d) of section 601 of the tax
law, as amended by section 1 of part R of chapter 63 of the laws of
2003, is amended to read as follows:
For taxable years beginning after nineteen hundred ninety AND BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY-TWO, there is hereby imposed a
supplemental tax in addition to the tax imposed under subsections (a),
(b) and (c) of this section for the purpose of recapturing the benefit
of the tax tables contained in such subsections or section six hundred
ninety-nine of this article, as the case may be. The supplemental tax
shall be an amount equal to the sum of the tax table benefits in para-
graphs one, two and three of this subsection multiplied by their respec-
tive fractions in such paragraphs provided, however, that paragraph two
of this subsection shall not apply to taxpayers that are not subject to
the second highest rate of tax.
§ 3. The opening paragraph of subsection (d-1) of section 601 of the
tax law, as amended by section 4 of part TT of chapter 60 of the laws of
2016, is amended to read as follows:
Notwithstanding the provisions of subsection (d) of this section, for
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
FIRST, TWO THOUSAND TWENTY-TWO, there is hereby imposed a supplemental
tax in addition to the tax imposed under subsections (a), (b) and (c) of
this section for the purpose of recapturing the benefit of the tax
tables contained in such subsections. During these taxable years, any
reference in this chapter to subsection (d) of this section shall be
read as a reference to this subsection.
§ 4. The opening paragraph of paragraph 1 of subsection (d-1) of
section 601 of the tax law, as amended by section 5 of part TT of chap-
ter 60 of the laws of 2016, is amended to read as follows:
For resident married individuals filing joint returns and resident
surviving spouses, the supplemental tax shall be an amount equal to the
sum of the tax table benefits described in subparagraphs (A), (B), (C)
and (D) of this paragraph multiplied by their respective fractions in
such subparagraphs. Furthermore, in making the calculations described in
these subparagraphs in taxable years beginning after tax year two thou-
sand seventeen AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, the
applicable tax rates specified in subparagraph (B) of paragraph one of
subsection (a) of this section shall be substituted for the rates refer-
enced in these subparagraphs.
§ 5. Subparagraph (D) of paragraph 1 of subsection (d-1) of section
601 of the tax law, as amended by section 4 of part A of chapter 59 of
the laws of 2021, is amended to read as follows:
(D) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(a) of this section not subject to the 8.82 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
of this paragraph. The fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand dollars or the
excess of New York adjusted gross income for the taxable year over two
million dollars and the denominator is fifty thousand dollars. This
subparagraph shall apply only to taxable years beginning on or after
January first, two thousand twelve and before January first, two thou-
sand [twenty-one and for tax years beginning on or after January first,
two thousand twenty-eight] TWENTY-TWO.
§ 6. Subparagraph (E) of paragraph 1 of subsection (d-1) of section
601 of the tax law, as amended by section 4 of part A of chapter 59 of
the laws of 2021, is amended to read as follows:
(E) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(a) of this section not subject to the 9.65 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A), (B), and
(C) of this paragraph. The fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand dollars or excess
of New York adjusted gross income for the taxable year over two million
dollars and the denominator is fifty thousand dollars. This subparagraph
shall apply only to the taxable years beginning on or after January
first, two thousand twenty-one and before January first, two thousand
[twenty-eight] TWENTY-TWO.
A. 8221--A 3
§ 7. Subparagraph (F) of paragraph 1 of subsection (d-1) of section
601 of the tax law, as added by section 4 of part A of chapter 59 of the
laws of 2021, is amended to read as follows:
(F) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(a) of this section not subject to the 10.30 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A), (B), (C)
and (E) of this paragraph. The fraction for this subparagraph is
computed as follows: the numerator is the lesser of fifty thousand
dollars or excess of New York adjusted gross income for the taxable year
over five million dollars and the denominator is fifty thousand dollars.
This subparagraph shall apply only to the taxable years beginning on or
after January first, two thousand twenty-one and before January first,
two thousand [twenty-eight] TWENTY-TWO.
§ 8. Subparagraph (G) of paragraph 1 of subsection (d-1) of section
601 of the tax law, as added by section 4 of part A of chapter 59 of the
laws of 2021, is amended to read as follows:
(G) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(a) of this section not subject to the 10.90 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A), (B), (C),
(E) and (F) of this paragraph. The fraction for this subparagraph is
computed as follows: the numerator is the lesser of fifty thousand
dollars or excess of New York adjusted gross income for the taxable year
over twenty-five million dollars and the denominator is fifty thousand
dollars. This subparagraph shall apply only to the taxable years begin-
ning on or after January first, two thousand twenty-one and before Janu-
ary first, two thousand [twenty-eight] TWENTY-TWO.
§ 9. The opening paragraph of paragraph 2 of subsection (d-1) of
section 601 of the tax law, as amended by section 6 of part TT of chap-
ter 60 of the laws of 2016, is amended to read as follows:
For resident heads of households, the supplemental tax shall be an
amount equal to the sum of the tax table benefits described in subpara-
graphs (A), (B) and (C) of this paragraph multiplied by their respective
fractions in such subparagraphs. Furthermore, in making the calculations
described in these subparagraphs in taxable years beginning after tax
year two thousand seventeen AND BEFORE JANUARY FIRST, TWO THOUSAND TWEN-
TY-TWO, the applicable tax rates specified in subparagraph (B) of para-
graph one of subsection (b) of this section shall be substituted for the
rates referenced in these subparagraphs.
§ 10. Subparagraph (C) of paragraph 2 of subsection (d-1) of section
601 of the tax law, as amended by section 5 of part A of chapter 59 of
the laws of 2021, is amended to read as follows:
(C) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(b) of this section not subject to the 8.82 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (b) of this section
less the sum of the tax table benefits in subparagraphs (A) and (B) of
A. 8221--A 4
this paragraph. The fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand dollars or the
excess of New York adjusted gross income for the taxable year over one
million five hundred thousand dollars and the denominator is fifty thou-
sand dollars. This subparagraph shall apply only to taxable years begin-
ning on or after January first, two thousand twelve and before January
first, two thousand [twenty-one and for tax years beginning on or after
January first, two thousand twenty-eight] TWENTY-TWO.
§ 11. Subparagraph (D) of paragraph 2 of subsection (d-1) of section
601 of the tax law, as amended by section 5 of part A of chapter 59 of
the laws of 2021, is amended to read as follows:
(D) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(a) of this section not subject to the 9.65 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A) and (B) of
this paragraph. The fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand dollars or excess
of New York adjusted gross income for the taxable year over one million
five hundred thousand dollars and the denominator is fifty thousand
dollars. This subparagraph shall apply only to the taxable years begin-
ning on or after January first, two thousand twenty-one and before Janu-
ary first, two thousand [twenty-eight] TWENTY-TWO.
§ 12. Subparagraph (E) of paragraph 2 of subsection (d-1) of section
601 of the tax law, as added by section 5 of part A of chapter 59 of the
laws of 2021, is amended to read as follows:
(E) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(a) of this section not subject to the 10.30 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A), (B) and (D)
of this paragraph. The fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand dollars or excess
of New York adjusted gross income for the taxable year over five million
dollars and the denominator is fifty thousand dollars. This subparagraph
shall apply only to the taxable years beginning on or after January
first, two thousand twenty-one and before January first, two thousand
[twenty-eight] TWENTY-TWO.
§ 13. Subparagraph (F) of paragraph 2 of subsection (d-1) of section
601 of the tax law, as added by section 5 of part A of chapter 59 of the
laws of 2021, is amended to read as follows:
(F) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(a) of this section not subject to the 10.90 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A), (B), (D)
and (E) of this paragraph. The fraction for this subparagraph is
computed as follows: the numerator is the lesser of fifty thousand
dollars or excess of New York adjusted gross income for the taxable year
over twenty-five million dollars and the denominator is fifty thousand
A. 8221--A 5
dollars. This subparagraph shall apply only to the taxable years begin-
ning on or after January first, two thousand twenty-one and before Janu-
ary first, two thousand [twenty-eight] TWENTY-TWO.
§ 14. The opening paragraph of paragraph 3 of subsection (d-1) of
section 601 of the tax law, as amended by section 7 of part TT of chap-
ter 60 of the laws of 2016, is amended to read as follows:
For resident unmarried individuals, resident married individuals
filing separate returns and resident estates and trusts, the supple-
mental tax shall be an amount equal to the sum of the tax table benefits
described in subparagraphs (A), (B) and (C) of this paragraph multiplied
by their respective fractions in such subparagraphs. Furthermore, in
making the calculations described in these subparagraphs in taxable
years beginning after tax year two thousand seventeen AND BEFORE JANUARY
FIRST, TWO THOUSAND TWENTY-ONE, the applicable tax rates specified in
subparagraph (B) of paragraph one of subsection (c) of this section
shall be substituted for the rates referenced in these subparagraphs.
§ 15. Subparagraph (C) of paragraph 3 of subsection (d-1) of section
601 of the tax law, as amended by section 6 of part A of chapter 59 of
the laws of 2021, is amended to read as follows:
(C) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(c) of this section not subject to the 8.82 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (c) of this section
less the sum of the tax table benefits in subparagraphs (A) and (B) of
this paragraph. The fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand dollars or the
excess of New York adjusted gross income for the taxable year over one
million dollars and the denominator is fifty thousand dollars. This
subparagraph shall apply only to taxable years beginning on or after
January first, two thousand twelve and before January first, two thou-
sand [twenty-one and for tax years beginning on or after January first,
two thousand twenty-eight] TWENTY-TWO.
§ 16. Subparagraph (D) of paragraph 3 of subsection (d-1) of section
601 of the tax law, as amended by section 6 of part A of chapter 59 of
the laws of 2021, is amended to read as follows:
(D) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(a) of this section not subject to the 9.65 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A) and (B) of
this paragraph. The fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand dollars or excess
of New York adjusted gross income for the taxable year over one million
five hundred thousand dollars and the denominator is fifty thousand
dollars. This subparagraph shall apply only to the taxable years begin-
ning on or after January first, two thousand twenty-one and before Janu-
ary first, two thousand [twenty-eight] TWENTY-TWO.
§ 17. Subparagraph (E) of paragraph 3 of subsection (d-1) of section
601 of the tax law, as added by section 6 of part A of chapter 59 of the
laws of 2021, is amended to read as follows:
(E) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
A. 8221--A 6
(a) of this section not subject to the 10.30 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A), (B) and (D)
of this paragraph. The fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand dollars or excess
of New York adjusted gross income for the taxable year over five million
dollars and the denominator is fifty thousand dollars. This subparagraph
shall apply only to the taxable years beginning on or after January
first, two thousand twenty-one and before January first, two thousand
[twenty-eight] TWENTY-TWO.
§ 18. Subparagraph (F) of paragraph 3 of subsection (d-1) of section
601 of the tax law, as added by section 6 of part A of chapter 59 of the
laws of 2021, is amended to read as follows:
(F) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(a) of this section not subject to the 10.90 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A), (B), (D)
and (E) of this paragraph. The fraction for this subparagraph is
computed as follows: the numerator is the lesser of fifty thousand
dollars or excess of New York adjusted gross income for the taxable year
over twenty-five million dollars and the denominator is fifty thousand
dollars. This subparagraph shall apply only to the taxable years begin-
ning on or after January first, two thousand twenty-one and before Janu-
ary first, two thousand [twenty-eight] TWENTY-TWO.
§ 19. This act shall take effect immediately.