ALBANY — It’s a millionaire’s tax in name only.
More than three-quarters of the roughly 220,000 individuals and small businesses hit by New York’s surcharge on the wealthy — known as the millionaire’s tax — make less than $1 million a year, a business-backed analysis released yesterday found.
“They’re often two-income families struggling to maintain a middle-class existence in a high-cost region,” said Kathryn Wylde, president and CEO of the Partnership for New York City, which released the report.
The looming Dec. 31 expiration of the income-tax surcharge, which extends to individuals and small businesses making as little as $200,000 annually, has emerged as a flashpoint in Albany’s debate over how to close a projected $10 billion budget gap.
Public-employee unions and their legislative allies — led by Assembly Speaker Sheldon Silver (D-Manhattan) — argue that extending the “temporary” 2009 tax would generate $1.25 billion in the next fiscal year and $4.1 billion the year after.
Democratic Gov. Cuomo and Senate Majority Leader Dean Skelos (R-LI), however, say letting the surcharge expire is necessary to improving the state’s oft-criticized business climate.