Just as people finish paying their land taxes that came due in
January, it’s time to sit down and plow through that form 1040 or state
form IT-201. April 15 is just around the corner. Blah.
Paying taxes remind us just how high New York taxes are for an average family or a business.
At $5,094 per household, New York ranks first in the continental
United States in the amount of total local taxes levied per household.
When combined with local sales, income and other taxes, the local tax
burden in New York averaged $6,377 per household, the highest in the
continental U.S. and more than twice the national average of $2,952.
That’s why the Senate is promoting an $8.4 billion tax relief plan,
focusing on property tax relief, help for small businesses and relief
from high energy costs. With a total state surplus approaching $4
billion, now is the time to provide real tax relief for taxpayers.
The budget the senate will act on will include almost $3 billion in
property tax relief, to be phased in over three years. The savings to
state taxpayers in 2006-07 would be $1.3 billion.
Highlights of the Senate tax cut package include:
Property tax relief
• $2.2 billion in direct rebate checks to property taxpayers with
the option of a freeze for senior citizens when they reach age 70, in
lieu of a rebate.
• $250 million in additional property tax relief savings by
providing for an annual adjustment of STAR benefits to reflect
increasing home values.
• $435 million for a new small business STAR program.
Income tax relief
• $100 million would be saved, primarily by senior citizen
homeowners and renters, by expanding the real property tax circuit
breaker for the first time since it was enacted in 1977.
• $200 million in tax savings for middle-income taxpayers.
• $75 million in savings to low income New Yorkers by expanding the Earned Income Tax Credit.
• $39 million in tax savings for volunteer firefighters and EMS personnel.
Business tax cuts
• $600 million in savings to businesses by eliminating the income
tax and corporate franchise taxes on manufacturers, regardless of size.
• $1.7 billion to provide an income tax credit to help small
businesses afford health insurance costs for employees, and provide
incentives to offer health savings accounts and freedom policies. The
Senate is also proposing to expand the Healthy NY program so more small
businesses can afford to provide health insurance for employees.
• $400 million in savings by eliminating the supplemental personal income tax on small businesses.
• Small businesses would also save through the Senate’s $435 million
small business STAR property tax rebate plan and a $350 million energy
tax credit plan.
Energy tax relief
• $350 million in savings through a refundable tax credit to help small businesses with rising energy costs.
• $140 million in savings to more than 640,000 senior citizens
through the Senate’s Senior Heat program. Based on the enhanced STAR
program, it would provide a $200 rebate check to senior citizen
homeowners to offset the cost of home heating and a $100 refundable tax
credit to seniors who rent and pay for their heat.
• $100 million in relief from high gasoline prices by capping the state sales tax on gas at $2 per gallon.
• $15 million tax credit for use of alternative energy sources.
• $40 million in sales tax exemptions on energy saving products.
The fight is on – for real tax relief, starting with the state’s property taxes.
Senator Seward’s office web site is www.senatorjimseward.com.
|