Amid voter concerns over the cost of rent, food and child care, Mayor Eric Adams announced a plan on Wednesday to eliminate New York City income taxes for more than 400,000 of the lowest wage earners.
Under the proposal, which requires approval by the State Legislature, New Yorkers who earn 150 percent of the federal poverty level, or between roughly $31,000 to $46,000 depending on family size, would have their city income taxes eliminated.
Others who earn slightly more could also have their taxes reduced, bringing to 582,000 the number of people affected by the plan. Households who qualify would save an average of $350, according to city officials.
If the plan is approved, the city would forfeit roughly $63 million a year in tax revenue, but administration officials believe that other revenue such as corporate taxes or cannabis sales taxes would make up for the loss.
“How do we put money back into the pockets of New Yorkers?” Mr. Adams said at a news conference announcing the plan. “We can’t bring down the cost of bread, but we can give you some bread to pay for the bills and the necessities that you have.”
The announcement comes as Mr. Adams, who is under a federal corruption indictment and scheduled to go to trial in April, has focused on affordability as a major plank in his campaign for re-election. The mayor has labeled this week “affordability week” and has rolled out a series of proposals and announcements designed to make living in the city more manageable, especially for working-class New Yorkers.
A few hours after announcing his income tax proposal, the mayor broke ground on a plan to build affordable housing and a soccer stadium in Willets Point, Queens.
The City Council will also vote this week on the mayor’s City of Yes zoning overhaul, designed to allow the construction of 80,000 additional homes.
It was not immediately clear how the tax plan would fare in Albany, but legislative leaders seemed open to discussion. It will be introduced by State Senator Leroy Comrie of Queens and Assemblywoman Rodneyse Bichotte Hermelyn of Brooklyn, both allies of the mayor.
Mr. Adams faces several challengers in the upcoming June primary, and many of his rivals have criticized his administration’s efforts at managing the city’s $112 billion budget and improving affordability.
Zellnor Myrie, a state senator from Brooklyn who officially launched his mayoral campaign Tuesday with a plan to build and preserve one million housing units in a decade, said that “every dollar helps” but that the mayor wasn’t doing enough to bring down the cost of housing.
“New York’s cost of living will keep rising until we put forward solutions as big as the challenges we face,” Mr. Myrie said.
Brad Lander, the city comptroller who is also running for mayor, called the proposal a “good idea” but said Mr. Adams was failing to deliver for struggling New Yorkers “on things he actually has control over” such as early childhood education, library funding and delivering financial assistance in a timely fashion.
Democrats hold large majorities in both the State Assembly and Senate. They are also eager to tackle problems relating to affordability. But some have expressed reluctance to work with Mr. Adams, whom they had viewed as disengaged on the issue and mostly concerned with maintaining his own political career.
Even on Tuesday, some dissension was evident. A spokeswoman for Mr. Adams said that his office had notified leaders of the Assembly and the State Senate of his plan, but legislative leaders said they had not been briefed.
Still, Mike Murphy, a spokesman for the Senate Democrats, said in a written statement that “affordability has always been a major component of our agenda.”
“We look forward to working with our partners in Albany to continue addressing the affordability crisis affecting everyday New Yorkers across New York State,” Mr. Murphy added.
Mike Whyland, a spokesman for Assembly Speaker Carl E. Heastie, called the proposal “promising” and part of a larger affordability agenda under discussion with Gov. Kathy Hochul.
Ms. Hochul was “supportive” of efforts to lower the personal income tax and praised the mayor for “continuing to focus on affordability,” said her spokesman, Avi Small.
Senator Michael Gianaris, the deputy majority leader, said that the Senate would always consider ideas from Mr. Adams and that the city’s upcoming mayoral election would not factor into how senators dealt with the proposal. Addressing affordability is a priority for elected officials from across the state, he added.
“But there are a lot of ideas about how to do that,” Mr. Gianaris said. “We will have a robust discussion with our colleagues to figure out the best way forward.”
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