Brooklyn, NY -- Saying “New York State is making a down payment on its future,” State Senator Kevin Parker (D- Brooklyn) praised a series of individual and business tax cuts enacted by the Legislature, including a $1.3 billion property tax rebate, that will make the State a more affordable place to live and do business.
“For far too long, New York’s residents and businesses have been saddled with the highest combined taxes in the country. With these tax cuts, we have begun the process of turning this state around,” Senator Parker said.
The total property tax relief adopted by the Legislature will double to $1.3 billion, with tax cuts targeted to the middle-class families that need them the most. Property tax rebate checks sent to taxpayers will increase substantially. Homeowners will also receive increased adjustments to their property tax bills through the STAR (School Tax Relief) program.
Senator Parker noted that despite the existence of STAR, property taxes have continued to skyrocket throughout the State, and the problem has made it especially difficult for many middle class New Yorkers whose wages are not keeping pace.
“Simply put, we haven’t done a good job of making New York affordable. It is important that we fund education, but school districts cannot continue to rely on our already overburdened taxpayers. There comes a time when the State has to step up and help our schools and homeowners,” Senator Parker said.
Senator Parker noted that reducing the rate of growth of the Medicaid program will also have a positive impact, as will increased State aid to distressed municipalities located outside of New York City. Another $208 million will be sent to these municipalities over the next four years, and the aid will be tied to more stringent accountability measures to ensure funds are spent wisely and effectively.
“By significantly reducing growth in Medicaid spending, and providing more money to areas whose economies have suffered for decades, we are taking concrete steps to lower the property tax burden of New Yorkers,” Senator Parker said.
Senator Parker also praised the closure of several blatant corporate tax loopholes that will raise some $425 million for the State. One of the closures will require companies with out-of-state subsidiaries to file combined tax returns.
To offset the impact of the corporate tax closures on the budget, the State will lower the corporate franchise rate tax to 7.1 percent for a savings of $75 million. There will be tens of millions of dollars in additional tax cuts for the manufacturing industries.
Senator Parker said the 2007-08 budget is a good starting point for reforming the way our state does business, especially when it comes to taxes.
“The SenateMinority hasbeen trying to send a message for some time that New York can longer afford to spend and tax like it has been. Thanks to Governor Spitzer, we had a seat at the table, and our ideas were heard. I am confident that this is just the start of a brighter future,” Senator Parker said.