Opinion: It’s time to Axe the Tax for working-class NYC families

As the Albany legislative session gets underway, state lawmakers must make the unaffordability crisis inflicting New York City a priority. Far too many families considered low- and middle-income are fleeing New York City in search of cities where the cost of living fits their budgets, but our state cannot afford to lose them. These New Yorkers contribute significantly to the vitality, growth and economy of both the city and state.

According to the recently released, first-ever national “True Cost of Economic Security” measure that calculates what Americans in each county of the country need to cover their daily living expenses and save and plan for their families’ futures, it is more so the lack of resources than costs that leave them struggling. Whereas costs have risen significantly in the last several years, the income, assets and supports that people must have to meet them have not kept up. A recent study by the Urban Institute, which created the True Cost of Economic Security measure, revealed that 62% of New York City families are insecure; they simply do not have the resources required to do more than merely get by and cannot even begin to get and stay ahead.

This is why I support New York City Mayor Eric Adams’ “Axe the Tax for the Working Class” proposal to fully eliminate the New York City personal tax for tax filers with dependents living at or below 150% of the federal poverty level and to reduce the tax for filers making less than $5,000 above 150% of the federal poverty level. Eliminating the income tax for working-class families at or below 150% of the federal poverty level would benefit more than 429,000 New Yorkers in the aggregate amount of $46 million, and lowering taxes for people immediately above 150% of the federal poverty level would return another $17 million to over 152,500 New Yorkers. The mayor’s proposal would deliver an average benefit of approximately $350 to each household.

That’s a lot of numbers and figures, but what it means in plain-speak is Axe the Tax would put money back in the pockets of New York City families who are struggling to be economically secure. While it alone will not solve every family’s economic woes, every dollar surely counts and helps close the gap.

As the chair of the 2021-2022 NYC Racial Justice Commission – which put the true cost of living measure on the ballot, which subsequently was voted on and overwhelmingly adopted by the electorate, to require the city to both calculate true cost and then use the results to continually shape and form policies aimed at ensuring economic security for all New Yorkers – I am encouraged that the city is advancing the Axe the Tax proposal to the state Legislature.

One of the most powerful tools our government has for advancing fairness and security is the tax code, and this and other tax-related proposals being advanced by Gov. Kathy Hochul to put and keep money in the hands and pockets of New Yorkers having a hard time would make a meaningful difference.

I am calling for the passage of Axe the Tax, and I am not alone. Our union brothers and sisters at the Hotel Trades Council, 32BJ SEIU and the Retail, Wholesale and Department Store Union are calling for Albany to Axe the Tax, knowing it will benefit their working-class union members. Hochul, Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins have all said that affordability is a key issue for them this session. The momentum and movement for Axe the Tax is there; we just need to get it done.