Hochul Pressed to Raise Rates on Upper Tax Brackets
Governor’s State of the State Address Falls Short on Progressive Tax Structure
ALBANY, N.Y. (NEXSTAR) — While Gov. Kathy Hochul proposed middle-class tax cuts, expanded child tax credits, and a $3 billion inflation rebate in her 2025 State of the State address, she avoided measures targeting billionaires and high-earning corporations. Critics argued that she’d have a greater impact if she funded anti-poverty measures through higher taxes on the wealthiest New Yorkers and the most profitable industries.
Tax Hike on the Rich Could Help Combat Poverty
"Hochul has again left out of her plans any measure to raise taxes on New York’s wealthiest corporations and individuals," reads a joint statement from the Rev. Dr. Liz Theoharis—the Executive Director of the Kairos Center for Religions, Rights, and Social Justice—and Rev. West McNeill, Director of the New York Labor-Religion Coalition. "Such tax increases—which are widely popular across the state—are an obvious tool to both slow the accumulation of wealth at the top and invest in the programs and services that will help the vast majority of New Yorkers to thrive."
Governor’s Affordability Plans Miss the Mark
Although Hochul tried to address New York’s rising cost of living, advocates for a more progressive tax structure said she missed the mark. Her affordability proposals included:
- A tax cut of up to 5% for those making under $323,200 per year
- A $3 billion inflation rebate for lower-income taxpayers
- Expanded child tax credits
- Universal free school breakfasts and lunches
- Direct payments to low-income mothers
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These plans would help many New Yorkers, but groups like Citizen Action of New York said the state government can go farther. And the governor’s office has not yet specifically identified or formulated funding sources for these programs.
Taxing the Wealthy Could Generate Billions
Advocates said that the state would better combat the affordability crisis by taxing its wealthiest residents and corporations more fairly. Citizen Action’s Interim Co-Executive Director Rebecca Garrard argued that those in the upper tax brackets don’t pay their fair share.
"Hochul’s refusal to tax the obscene wealth of billionaires and giant corporations speaks volumes," she said. "These entities rake in record profits from the hard work of New Yorkers, yet her address failed to offer the necessary relief that a fair tax on these profits could provide."
Legislative Efforts Fall Short
New York boasts some of the highest concentration of billionaires in the country and some of the highest rates of child poverty. Some 139 billionaires live in New York, compared with about 8 million or more who live at or below the poverty line. Over one in five kids live in poverty—or worse in cities like Rochester, Syracuse, and Buffalo that see even higher rates.
The tax receipts from a progressive tax rate on the ultra-rich could generate billions to support long-term relief for the most vulnerable New Yorkers. The 2024 legislative session saw at least five bills aimed at billionaire bank accounts. They included:
- S2162/A2576 would have taxed capital gains and stock dividends at a higher rate than wages
- S1980/A3690 proposed raising taxes on businesses making over $2.5 million
- S2059/A3115 would have changed tax brackets and tax rates, reaching 24% above for incomes over $20 million
- S1570/A3252 would have taxed billionaires’ capital gains before the assets were sold
- S2782/A3193 would have changed inheritance, with tax rates reaching 50% for estates over $10 million
Conclusion
While Hochul’s proposals may have addressed some of the state’s affordability concerns, advocates argue that she has not gone far enough. By taxing the wealthy and corporations more fairly, the state could generate billions to support programs and services that benefit the vast majority of New Yorkers.
FAQs
- What are the key takeaways from Hochul’s 2025 State of the State address?
- Middle-class tax cuts, expanded child tax credits, and a $3 billion inflation rebate
- What did the governor leave out of her plans?
- Measures targeting billionaires and high-earning corporations
- What are some of the benefits of a progressive tax structure?
- Slowing the accumulation of wealth at the top and investing in programs and services that benefit the majority of New Yorkers
- What are some of the proposed tax hikes on the wealthy and corporations?
- Higher tax rates on capital gains and stock dividends, taxes on businesses making over $2.5 million, and more
