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.
I couldn’t wait to sit down and pen this column, and to be frank, I wasn’t sure the day would ever come. The subject is a tax cut for the middle class, an issue discussed relentlessly by politicians, but one that has proven to be a rare and elusive animal in the world of real policy. Now, after over fifty years of increased New York State income taxes, it became a reality this past week in Albany.
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.
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.
A tax relief measure for manufacturers that will help them expand and create new jobs will also take effect next year, beginning January 1, 2012, as will provisions for flood relief and recovery, and the implementation of inflation adjustments to reduce personal income taxes.
Senator Jack M. Martins is reminding residents that lower state income tax rates take effect on January 1st.
"This was an important step in providing some relief to our taxpayers," Senator Martins said. “Enacting the new tax code was a fitting way to end a very productive 2011 during which we closed a $10 billion budget deficit without raising taxes, cut government spending, approved new job creation and economic development measures, and enacted a property tax cap. We must continue to build upon these achievements in the coming year.”
Taxpayers whose state and/or federal income tax returns indicate they will receive a tax refund this year can use the Internet to find out when their refund will arrive.
Both the New York State Department of Taxation and Finance and the Internal Revenue Service (IRS) allow taxpayers to track the status of tax refunds online through their respective websites. Taxpayers can utilize both refund tracking services approximately 72 hours after they file their tax returns electronically or four weeks after they mail a paper return.
Senator Jack M. Martins participated in a hearing held by the Senate Standing Committee on Investigations and Government Operations and the Senate Standing Committee on Finance to examine the tax policy in New York State and reform initiatives to find ways to provide relief to families and businesses in the state.