Assemblyman Alec Brook-Krasny (D-Coney Island, Dyker Heights) announced that the Assembly’s budget expands on last year’s tax relief, giving our families and New York State’s economy a chance to succeed.
“I have long supported tax relief for our families. Last year, for example, the Legislature cut taxes by eliminating the state sales tax on clothing and shoes under $110,” Assemblyman Brook-Krasny said. “We also created a $330 child tax credit, eliminated the marriage penalty and capped the gas tax. But we have more to do.”
Assemblyman Brook-Krasny added that the cost of living for middle-class New Yorkers is rising too fast for their incomes – and choking the economy. To ease the burden, the Assembly’s budget proposal cuts taxes and puts more money in the pockets of working families.
“Last year the Legislature enacted a $330 child tax credit to help working families keep more of their hard-earned money,” Assemblyman Brook-Krasny said. “Unfortunately, the Senate and Governor Pataki would not pass this measure without imposing an age eligibility requirement.”
“I believe that all families with children at home need tax relief – not just those with school-aged children,” Assemblyman Brook-Krasny said. “That’s why the Assembly’s budget recommends the expansion of the $330 child tax credit – now covering children 4 up to 17 – to include all children under 4 as well, beginning in 2008.”
Families with children under 4 can save up to $109 per child the first year, up to $218 in 2009 and up to $330 in 2010 when the expanded child tax credit is fully phased in. Expanding the child tax credit to all children under 17 will help a broader range of young families – not just those with children in private school. In the Assembly’s budget, the expansion of the child tax credit replaces the governor’s recommendation for a tax deduction up to $1,000 per child for private school tuition costs.
Assemblyman Brook-Krasny explained that under Middle Class STAR, New Yorkers will see a STAR tax relief increase based on a sliding scale tied to income. The average STAR savings for eligible homeowners will increase from $212 to a maximum of $382 and a minimum of $276, depending on income. For New York City seniors who qualify for Enhanced STAR, the average savings will increase from $381 to $495.
“We are also seeking to give renters some relief from the rising cost of living,” Assemblyman Brook-Krasny said. “The Assembly’s recommended tax cut provides an additional Personal Income Tax reduction to all but the wealthiest 2 percent of New York City residents, a recommendation the governor proposed.”
In addition, the Assembly is restoring $300 million in revenue sharing in 2008-2009, an out-year restoration that helps New York City in the upcoming fiscal year. Combined, the property and city income taxes add up to a substantial burden for New York City residents.
“The Assembly’s recommendations give working families the tax break they need to get ahead,” Assemblyman Brook-Krasny said. “We’ve also accepted a number of the governor’s recommendations to close loopholes many major corporations use to avoid paying their fair share.”
“Over the last 12 years, the Assembly Majority has voted to cut 19 different taxes a total of 81 times, saving taxpayers more than $140 billion cumulatively when fully phased in,” Assemblyman Brook-Krasny said. “This year, the Assembly has worked with the governor to save families even more. I will fight to include these recommendations in our final budget proposal to help put New Yorkers and the state on firm footing.”