The New York City comptroller is proposing an income tax hike for the city's top earners and a tax cut for everyone else.
Comptroller John Liu wants joint filers who make $500,000 or more a year to pay a higher rate while those making less would get a break.
"It makes little sense that a family with an income of $50,000 pays nearly the same tax rate as a family that makes $1 million," Comptroller Liu said. "New Yorkers are willing to pay fair taxes and this proposal makes the City's rates truly progressive, as they were always intended. Overall, it carries the added benefit of increased resources to help close budget deficits that loom in the near future."
Right now, tax rates are very close: A family that earns $50,000 a year pays a tax rate of 3.3 percent while a family that earns $1 million pays a rate of 3.7 percent.
Liu believes the proposal would raise an additional $250 million to $1 billion in revenue for the city's budget.