Issues: Income Tax

Middle class tax cuts that will reduce tax rates for millions of hardworking taxpayers and the two-percent property tax cap highlight new state laws that will go into effect on January 1, 2012.

The recently enacted tax cuts will reduce tax rates on middle class taxpayers to their lowest levels in more than 50 years (Chapter 55, L.2011). About 4.4 million middle class taxpayers will receive a total of $690 million in personal income tax relief.

Governor Andrew Cuomo signed the Middle Class Tax Cut and Job Creation Plan at the Cornwell Avenue School in West Hempstead, The bill, that as passed by the New York Senate last week, reduces the state tax burden for millions of New Yorkers to their lowest levels in more than fifty years. The far-ranging plan also strengthens our economy and creates jobs by eliminating the MTA payroll tax for more than 78 percent of employers that currently pay it, provides funds for state infrastructure projects and tax credits for youth employment. The plan provides a total $3.3 billion in tax relief to individuals and businesses.

Fact Sheet: Changes to tax rates for each tax bracket

The Middle Class Tax Cut and Job Creation Plan:

• Decreases the tax rate from 6.85 percent to 6.45 percent on the following incomes:o Married – Incomes between $40,000 and $150,000o Single – Incomes between $20,000 and $75,000o Head of Household – Between $30,000 and $100,000

• Decreases the tax rate from 6.85 percent to 6.65 percent on the following incomes:o Married – Incomes between $150,000 and $300,000o Single – Incomes between $75,000 and $200,000o Head of Household – Incomes between $100,000 and $250,000

No taxpayers will see their personal income taxes go up
Overwhelming majority of taxpayers to receive a tax break
91% of taxpayers affected by the PIT surcharge to receive tax cut

To figure out your reduced tax rate as a result of the Middle Class Tax Cut and Job Creation Plan, click here.

Extensive Bill Signed by Senate, Assembly and Governor Will Amend Tax Code, Cut MTA Payroll Tax

Along with Governor Cuomo and the Assembly, the New York Senate today passed an historic Middle Class Tax Cut and Job Creation Plan that reduces the state tax burden for millions of New Yorkers to their lowest levels in more than fifty years. The far-ranging plan also strengthens our economy and creates jobs by eliminating the MTA payroll tax for more than 78 percent of employers that currently pay it, provides funds for state infrastructure projects and tax credits for youth employment. The plan provides a total $3.3 billion in tax relief to individuals and businesses.

Posted by Majority Press on Wednesday, December 7th, 2011