Metro

Silver proposes a ‘millionaires tax’ lite

ALBANY — Assembly Speaker Sheldon Silver yesterday unveiled plans to tax the rich and restore some $700 million to education and other programs as state legislative leaders for the first time detailed budget proposals.

The powerful Manhattan Democrat’s scaled-down “millionaires tax” proposal represented a final push to save a revenue source prized by public-employee unions and legislative Democrats, but opposed by Gov. Cuomo and Senate Majority Leader Dean Skelos (R-LI).

Silver’s latest plan would extend the surcharge on the wealthiest New Yorkers for one year past its Dec. 31 expiration date.

It would also boost the threshold for paying the elevated rate to an actual $1 million in annual income, up from $200,000 under the current tax.

The legislation would preserve much of Cuomo’s hospital-backed plan to cut $2.3 billion in Medicaid spending, but strip from it a key proposal to cap at $250,000 pain-and-suffering awards in malpractice cases.

The cap faces fierce opposition from patient advocates and trial lawyers, such as the Weitz & Luxenberg law firm, which employs Silver as “of counsel.”

Skelos’ proposal would rely largely on more optimistic estimates of tax revenue to fund restorations to education aid. The legislation would also call for changes to Cuomo’s prison-closure plan to make it harder to shut facilities in economically depressed upstate towns.

Additional reporting by Fredric U. Dicker