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WPCNR DAILY CAPITOL. From Assemblyman Adam Bradley’s Office. March 11, 2006: Assemblyman Adam Bradley announced Friday a $2.4 billion tax-cut package that will be contained in the Assembly budget plan. At the heart of the package are proposals that will provide real and direct tax relief to more hard working families throughout New York State.
“Under the Assembly’s tax plan, 90 percent of the benefits will go to 90 percent of the taxpayers,” said Bradley, “The governor’s budget on the other hand would benefit the wealthiest 13 percent of New Yorkers.”
Cutting more Taxes for more New Yorkers
The Assembly proposal would provide a personal income tax credit equal to the amount of property taxes paid that exceeds 7.5 percent of income. The credit, ranging from $200 to $400, when fully phased in, would be available to taxpayers earning less than $150,000. The credit is also available for renters, as long as their property tax equivalent (25 percent of rent) exceeds 7.5 percent of their income.
The Assembly plan provides nearly $900 million in tax relief. In total, 2.6 million homeowners and renters throughout the state would benefit from a program designed to directly assist those who pay a disproportionate amount of property tax or rent in relation to their household income.
Child Tax Credits for Every Child Under 17
Another key component of the Assembly’s budget is $620 million in tax relief to families with children by providing a refundable child tax credit for every child from newborn to 17. Under the Assembly’s plan a typical family earning between $24,000 and $110,000 would receive a $300 per child tax credit when fully phased in. The plan, modeled after the federal child tax credit, would gradually phase-out the benefit for those with incomes above $110,000.
Sales Tax Deductible on Clothing.
In addition, the Assembly plan calls for the elimination of state sales tax on clothing and footwear under $110 as scheduled on April 1. Rejecting the governor’s attempt to extend the state clothing sales tax will save shoppers approximately $600 million a year.
Increases Standard Deduction.
The Assembly is also seeking to eliminate the marriage penalty tax and increase the standard deduction for head-of-household to equal that of a married jointly filing – raising the head-of-household deduction from $10,500 to $15,000. These two proposals would save New Yorkers $230 million annually with the benefit to the typical head-of-household taxpayer amounting to $300.
“Westchester families will certainly benefit from the Assembly’s tax cut plan,” said Bradley. “I will continue working in a bipartisan fashion to ensure key elements of the Assembly’s tax cut plan are included in the final state budget.”