GOP and Democrats differ on phasing in tax cut | News, Sports, Jobs
New York State is teeming with cash thanks to higher-than-expected tax revenue.
Assemblyman Michael Durso, R-Massapequa, wants to share the windfall with the state’s middle-class taxpayers. Last week, Durso introduced A.8862 to accelerate the state’s personal income tax rate for middle-income taxpayers originally enacted in 2016.
Durso’s plan comes with a $2 billion impact on state tax revenue and would now apply middle-class tax rates that are currently slated to take effect in 2024.
“As New Yorkers continue to struggle under the weight of inflation and the uncertainty surrounding the COVID-19 pandemic, the state has collected significantly more tax revenue than expected when the budget was passed. of the State 2021-22”, Durso wrote in his legislative justification. “Because of strong state revenues, New Yorkers should get tax relief. This bill would provide relief to taxpayers by accelerating the final years of middle-class tax cuts enacted in 2016, helping New York taxpayers keep more of the money they earn to help compensate for the threats they face due to rising prices and higher inflation costs. ”
The 2022-23 budget recently unveiled by Governor Kathy Hochul also includes an accelerated introduction of the middle-class tax cut. The eight-year phase-in of personal income tax cuts for middle-class taxpayers began in tax year 2018 and is currently expected to be completed early in the year. taxation 2025. The tax cut applies to approximately 6.1 million New Yorkers.
“Now let’s talk about putting more money back in people’s pockets,” Hochul said during his budget speech. “Rather than raising taxes, it’s about tax relief.
Accelerating a $1.2 billion tax cut originally scheduled to take effect between 2023 and 2025. [means] well over 6 million middle class taxpayers are getting their much needed money much sooner. At a time when inflation is robbing families of much-needed earnings and income, and recognizing that property taxes are still too high, we will provide a $2 billion property tax refund to more than 2 million homeowners. the middle class. And we’re giving $250 million in small business tax credits to help pay for COVID-related expenses.
Hochul is proposing a 3.1% spending increase in taxpayer dollars for its proposed 2022 budget. That spending is fueled by the state’s projected receipt of $5 billion more in tax revenue through March than expected. last fall. This increase in income is due in part to the slow recovery of the state’s economy, as well as tax hikes passed by lawmakers last year on high earners and big businesses. Hochul’s budget would also require the vacation rental industry, including Airbnb, to pay state and local sales taxes.