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Sponsors say mechanics agreed for 9.9% top rate; details and offsets to be worked out
Summary
Lawmakers said prime sponsors of a proposed 9.9% tax on income above $1,000,000 have agreed on basic mechanics but are awaiting bill text and stakeholder input; they also said a significant portion of revenue would be returned as relief for lower‑income households.
Reporters asked whether there was agreement on the central elements of a proposed income tax that would impose a 9.9% rate on adjusted gross income above $1,000,000. One speaker said Representative Joe Fitzgibbon and the Senate sponsor "have agreement on the mechanics of the tax," but that staff were still awaiting draft language and further stakeholder engagement.
Speakers said the proposal is intended both to raise revenue from high‑income earners and to deliver reductions for many working families through credits such as the Working Families Tax Credit, property‑tax relief or small‑business credits. A lawmaker described estimates that, if the tax passed and generated $3.5–4 billion annually, a significant portion would be returned to the majority of taxpayers via targeted reductions.
Officials cautioned that most structural revenue options are unlikely to arrive in time to fully balance the 2025–27 operating budget; instead, cuts and transfers are expected to address the immediate shortfall while smaller, quicker revenue options — for example changes to excise taxes — could help in limited ways for the biennium. Lawmakers said they will share more specifics as drafts are completed and stakeholdering proceeds.
