PROGRESS!

While defeat is an orphan, victory has many fathers and mothers. The Governor, Senate and Assembly have announced an agreement on overhauling the New York tax code which will go a long way toward reintroducing fairness for working families in this state.

While the details of the reform package are not yet completely fleshed out, we do know that the leaders have agreed to a fairer tax system that provides tax reductions for the middle class and it adds more tax brackets for upper income earners.

All current tax rates will be modestly reduced, while at the same time, additional brackets will be added for those earning more than $2 million. The following chart outlines the new and old tax rates by earning brackets.

The new tax bracket structure would be reorganized as follows:
Income Level	Previous Tax Rate	New Tax Rate
$40,000 to $150,000	6.85%	6.45%
$150,000 to $300,000	6.85%	6.65%
$300,000 to $2 million	7.85% - 8.97%	6.85%
Over $2 million	8.97%	8.82%

The tax reform is but a part of an overall package that includes economic development programs meant to improve the state's lagging economy. A reduction of the MTA tax is part of the deal, as is an agreement to put a constitutional amendment on Casino gambling before the voters of this state, the creation of an infrastructure fund to create jobs, and inner city youth employment program and tax credit, assistance for flood ravaged communities and modest corporate tax rate reductions for manufacturers.

There are many details that have yet to be parsed and we will pass them along to you as soon as they become available. In the meantime, it is with a great deal of pride that I write to thank you all for your tireless activism in educating members of the Legislature and Governor Cuomo on the need to restore progressivity to our tax code. We have all sacrificed so much; it's heartening to see that finally all New Yorkers will be paying their fair share as we move this state ahead.

Thank you for the phone calls, lobbying visits, rallies, faxes and personal conversations you have had with lawmakers. It appears to have paid off.

We will be downtown at the Capitol for the rest of the week trying to ensure that this progressive package is not derailed on its way to approval.

Thank you once again for all you have done!