Mayor Adams Launches ‘Axe the Tax’: A Win for Working Families!
December 4, 2024
Video available at: https://youtu.be/TY6oYp9l6Vc
Introducing the ‘Axe the Tax’ Initiative: A Game Changer for Over 582,000 New Yorkers
Unlocking Over $63 Million in Savings for Working Families
This Bold Proposal Pairs with NYC’s EITC to Deliver a Whopping $408 Million in Tax Relief
Mayor Adams Urges State Legislature to Back This Groundbreaking Plan in the FY26 Budget
NEW YORK – Today, Mayor Eric Adams unveiled an audacious new initiative dubbed “Axe the Tax for the Working Class,” poised to revolutionize financial relief for hardworking families in the city. This transformative plan aims to abolish the New York City Personal Income Tax for over 429,600 filers with dependents who are living at or below 150% of the federal poverty line. Even better, it will also reduce taxes for more than 152,500 others just above that threshold. The result? An incredible $63 million infused back into the hands of over 582,000 New Yorkers. Mayor Adams is rallying support in the upcoming Fiscal Year 2026 budget, backed by State Senator Leroy Comrie and Assemblymember Rodneyse Bichotte Hermelyn, who are committed to championing this pivotal legislation. If approved, ‘Axe the Tax for the Working Class’ could bring immediate relief as soon as tax year 2025.
This initiative builds on the momentum of the Adams administration, which has consistently focused on enhancing the financial well-being of working-class New Yorkers. Just last year, Mayor Adams successfully urged state leaders to expand the New York City Earned Income Tax Credit (EITC) for the first time in nearly two decades, resulting in over $345 million in tax relief during the 2023 tax season alone. Together, ‘Axe the Tax’ and the enhanced NYC EITC promise to channel more than $408 million back into the pockets of 2 million New Yorkers, effectively eliminating income taxes for a family of four earning less than $46,350.
“The skyrocketing cost of living is pushing our working-class families out of vibrant cities like New York,” stated Mayor Adams. “For far too long, these issues have been swept under the rug—but not anymore. With ‘Axe the Tax for the Working Class,’ we’re making a bold statement: it’s time to prioritize our families and their financial health. This plan will return an impressive $63 million to over 582,000 New Yorkers, and, when paired with the NYC EITC, together we’ll secure over $400 million in relief for 2 million hardworking individuals. My goal as mayor is to ensure families can afford rent, healthcare, and groceries—this is how we do it. New York City is leading the way, and we hope other cities will follow suit. A huge thank you to Senator Comrie and Assemblymember Bichotte Hermelyn for their partnership on this crucial legislation as we aim for its passage in Albany.”
“From day one, Mayor Adams has charged me with championing the needs of working-class families who are the backbone of our city,” commented First Deputy Mayor Maria Torres-Springer. “Our ‘Axe the Tax’ initiative will return $63 million to hard-working New Yorkers, providing them with the financial breathing room they need for groceries, child care, healthcare, and daily essentials. We want to empower all New Yorkers to thrive and raise their families within our five boroughs.”
“Working-class families are the lifeblood of New York City, yet many still find it difficult to make ends meet,” stated New York State Senator Comrie. “At a time when families are grappling with rising costs, this bold proposal will inject tens of millions of dollars back into our communities and make our city a more affordable place for families. I commend Mayor Adams for his leadership and am excited to partner with him in Albany to deliver this essential relief.”
“While we’ve made strides in creating a safer, more affordable city, we know more can be done for working-class families,” remarked New York State Assemblymember Bichotte Hermelyn. “Mayor Adams’ ‘Axe the Tax’ proposal, in conjunction with the expansion of the NYC EITC, will inject hundreds of millions back into our communities, helping families get ahead.”
The ‘Axe the Tax for the Working Class’ initiative will eliminate New York City Personal Income Taxes for filers with dependents—primarily families with children—earning at or below 150% of the federal poverty line. Moreover, it will gradually reduce the city income tax for those earning just above that threshold, providing much-needed relief to more families.
Table for illustrative purposes showing maximum annual income for different family sizes at 150 percent of the current U.S. Census Bureau’s Official Poverty Measure. Data for larger family sizes can be found online.
By abolishing the NYC Personal Income Tax for working-class families, this initiative would return nearly $46 million to over 429,000 New Yorkers, including tax filers and their dependents. Furthermore, adjusting taxes for those slightly above the poverty threshold would return an additional $17 million to over 152,500 New Yorkers, resulting in a total of over $63 million in savings and an average benefit of around $350 per household.
The ‘Axe the Tax for the Working Class’ proposal is a continuation of the Adams administration’s mission to enhance the financial well-being of New Yorkers. The administration has already saved New Yorkers over $30 billion by connecting them with vital city, state, and federal programs, including the historic expansion of the NYC EITC, which offered an average benefit of approximately $450 per household. If this proposal is enacted, it and the NYC EITC will deliver an average benefit of $800 per household, effectively eliminating NYC income taxes for a family of four earning less than $46,350.
Table showing potential tax relief for NYC families from both the Enhanced NYC EITC and ‘Axe the Tax for the Working Class.’
In addition, since the beginning of the Adams administration, the New York City Department of Consumer and Worker Protection’s (DCWP) “NYC Free Tax Prep” initiative has saved New Yorkers nearly $57 million in tax preparation fees by assisting with approximately 257,000 tax returns filed at no cost. This past tax season, over 140 in-person sites across the boroughs offered free tax preparation services, and specialized options are now available for self-employed individuals, freelancers, and small business owners—who often encounter unique challenges in filing and managing their finances.
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