Albany, N.Y., February 4–State Senator Tom O’Mara (R,C-Big Flats) today joined his colleagues in the Senate Minority Conference to propose a “Keep What You Have Earned” legislative package that, if enacted, would deliver the largest-ever middle-class income tax cut and additional broad-based tax relief for all New Yorkers.

The plan continues rolling out the Senate Minority Conference's broader “Save New York” legislative agenda for 2026, a plan to improve affordability, enhance public safety, and build a stronger New York for today and future generations. 

O'Mara, Ranking Member on the Senate Finance Committee, said, "It's time to cut taxes. It's time to stop making New York's state and local taxpayers foot the bill for an out-of-control state government. For far too long, New York has been recognized as one of the highest taxed states in America and New York's taxpayers have had enough. They're sick and tired of all talk, no action on affordability and they're demanding common sense, fairness, and responsibility." 

One of the key proposals of the Senate GOP’s plan is legislation being co-sponsored by O’Mara (S.9110), known as the “Taxpayer Rescue Act,” that would provide $37 billion in state income tax relief to New Yorkers, the largest middle-class tax cut in New York State history. Over a 10-year period, the proposal would eliminate state personal income tax on the first $50,000 of income for single filers and the first $100,000 for joint filers. New Yorkers that file jointly would see an estimated savings of up to $6,000 once fully phased in. It would also lower the tax rate to 4% for single filers up to $250,000 and $500,000 for those married filing jointly. 

O’Mara stressed that New York State continues to rank dead last, worst in the nation, in the Tax Foundation’s recently released “Tax Competitiveness Index” that evaluates the tax climate in all 50 states in America in five major areas: corporate taxes; individual income taxes; sales and excise taxes; property and wealth taxes; and unemployment insurance taxes. 

“For the fifth straight year, New York ranks at the bottom of a sad heap,” O’Mara said.

The “Keep What You Have Earned” package also calls for:

* establishing a permanent 2% cap on annual state spending growth; 

* requiring a two-thirds vote from each house of the State Legislature to impose or extend state taxes, a two-thirds vote from local legislative bodies to impose or extend local taxes, and a two-thirds vote from local legislative bodies requesting an imposition or extension of taxes by the State Legislature;

* reducing the amount small businesses and farms must pay in taxes by increasing the corporate tax threshold from $390,000 to $500,000 and lowering the rate to 2.5%. Expanding the small business exemption to all PIT businesses regardless of whether they have employees, increasing the threshold to $500,000, increasing the exemption to 15%, and increasing the exemption to 20% for farmers. This measure (S.1487) is sponsored by O’Mara;

* no state income tax on overtime wages or on tips;

* reducing the property tax burden on homeowners by providing for a ten-year state takeover of the local share of Medicaid for local governments subject to the two-percent property tax cap, a move long supported by O’Mara; and

* freezing real property taxes for three years to provide relief to New York homeowners. 

O’Mara said, “The Albany majorities talk about New York State's affordability crisis, but their actions continue to show that they have no interest in reining in out-of-control spending, eliminating taxes, lowering costs, cutting burdensome regulations and mandates, or restoring public safety. Their vision for New York remains a vision built on irresponsibly spending billions upon billions of taxpayer dollars to increase handouts to their base. We need to save New York by restoring the right priorities, rebuilding stronger and safer communities, and working toward a more responsible and sustainable future for middle-class communities, families, workers, businesses, industries, and taxpayers. It's time to save New Yorkers from waking up every day worried about making ends meet in a state that has become less safe, less affordable, less free, less economically competitive, less responsible, and far less hopeful for the future."