ALBANY, N.Y. (NEXSTAR) — While Gov. Kathy Hochul proposed middle-class tax cuts, expanded child tax credits, and a $3 billion inflation rebate in her 2025 State of the State address, she avoided measures targeting billionaires and high-earning corporations. Critics argued that she'd have a greater impact if she funded anti-poverty measures through higher taxes on the wealthiest New Yorkers and the most profitable industries. "Hochul has again left out of her plans any measure to raise taxes on New York’s wealthiest corporations and individuals," reads a joint statement from the Rev. Dr. Liz Theoharis—the Executive Director of the Kairos Center for Religions, Rights, and Social Justice—and Rev. West McNeill, Director of the New York Labor-Religion Coalition. "Such tax increases—which are widely popular across the state—are an obvious tool to both slow the accumulation of wealth at the top and invest in the programs and services that will help the vast majority of New Yorkers to thrive." Although Hochul tried to address New York's rising cost of living, advocates for a more progressive tax structure said she missed the mark. Her affordability proposals included: A tax cut of up to 5% for those making under $323,200 per year A $3 billion inflation rebate for lower-income taxpayers Expanded child tax credits Universal free school breakfasts and lunches Direct payments to low-income mothers Advocates push for emergency food relief outside Hochul’s State of the State These plans would help many New Yorkers, but groups like Citizen Action of New York said the state government can go farther. And the governor's office has not yet specifically identified or formulated funding sources for these programs. Advocates said that the state would better combat the affordability crisis by taxing its wealthiest residents and corporations more fairly. Citizen Action's Interim Co-Executive Director Rebecca Garrard argued that the those in the upper tax brackets don't pay their fair share. Senate majority pushes legislative package with voting, election reform "Hochul’s refusal to tax the obscene wealth of billionaires and giant corporations speaks volumes," she said. "These entities rake in record profits from the hard work of New Yorkers, yet her address failed to offer the necessary relief that a fair tax on these profits could provide." New York boasts some of the highest concentration of billionaires in the country and some of the highest rates of child poverty. Some 139 billionaires live in New York, compared with about 8 million or more who live at or below the poverty line. Over one in five kids live in poverty—or worse in cities like Rochester, Syracuse, and Buffalo that see even higher rates. New York dyslexia, dysgraphia task force calls for early interventions, legislative support The tax receipts from a progressive tax rate on the ultra-rich could generate billions to support long-term relief for the most vulnerable New Yorkers. The 2024 legislative session saw at least five bills aimed at billionaire bank accounts. They included: S2162/A2576 would have taxed capital gains and stock dividends at a higher rate than wages S1980/A3690 proposed raising taxes on businesses making over $2.5 million S2059/A3115 would have changed tax brackets and tax rates, reaching 24% above for incomes over $20 million S1570/A3252 would have taxed billionaires' capital gains before the assets were sold S2782/A3193 would have changed inheritance, with tax rates reaching 50% for estates over $10 million Hochul proposes free public school breakfast and lunch But when push came to shove, legislators showed little appetite for the measures; none made it out of the Ways and Means Committee in the Assembly, or the Budget and Revenue Committee in the Senate. But, "Leadership of both chambers have indicated that raising revenue will be a part of our budget conversation," said Democratic State Sen. Jessica Ramos, who sponsored S1570/A3252 in the Senate. "As the newest member of the Senate Budget and Revenue Committee, I am eager to add my voice to that discussion.” And Democratic Assemblymember Jessica González-Rojas expressed cautious optimism after the State of the State. "I urge the governor and my colleagues in the legislature to keep an open mind as we review various revenue-raising policies," said the legislator, who cosponsored every one of the five bills above. "We are on the same team on addressing affordability, and we need more money to do so." Legislature releases committee assignments for 2025 Others had a less rosy perspective. "It's really hard to claim to care about affordability without addressing the elephant in the room," said Democratic State Sen. Jabari Brisport, who sponsored S2782/A3193. "Trying to tinker around without actually redistributing the wealth into the hands of the people who generated it does not meet the mark." In a lengthy statement, Democratic Assemblymember Phil Steck—cosponsor of S2059/A3115—questioned whether Hochul's proposals would be effective, or just a gimmick: "There were numerous tax credits proposed in the governor's address to support a wide variety of activities. New programs and tax credits both require new sources of revenue. Tax credits mean some people have to pay fewer taxes, so others have to make up the difference. The money to fund these things does not drop from the sky like manna from heaven. It seems inconsistent for the governor to call for tax cuts at the same time she is proposing new expenditures. Nor do I understand why tax credits continue to be viewed as the solution in many areas. The comptroller's studies of tax credits indicate that very few have produced net benefits to the state. Many of the policies the governor was espousing have been tried for 40 years without success. Finally, I think the vast majority of my constituents would rather have universal pre-kindergarten, a $17,000 value, than a $300 check." WATCH: Heastie opens legislative session focused on cost of living The Labor-Religion Coalition, the Kairos Center, and the New York Poor People’s Campaign have been calling on the governor to take bolder steps. Their petition, promoted as 2024 drew to a close, urged New York to impose a new progressive taxe rate to fund policies like: Creating a state rental assistance program to help low-income renters Doubling cash assistance benefits and indexing them to inflation. Expanding food assistance to cover 65,000 households excluded from SNAP over immigration status Senate adds amendment to immigration bill named after Laken Riley 6 high-tech products that are getting more affordable Senator Gomez names new member of staff The dangers of wildfire smoke on your health Ratcliffe edges closer to CIA confirmation with Democratic support: 5 takeaways