Martins: How do you spell relief? T-A-X C-U-T-S
The state senator calls the plan 'far-reaching.'
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 50 years of increased New York State income taxes, it became a reality this past week in Albany.
I am pleased to inform you that the Senate, Assembly and Governor worked together to bring you the Middle Class Tax Cut and Job Creation Bill that officially reduces taxes for more than 4 million New Yorkers to the lowest point in 58 years. It also eliminates the MTA payroll tax for 78 percent of those employers currently paying it and further stimulates job growth by providing tax credits for hiring young people and by investing heavily in rebuilding New York’s decaying infrastructure. We’ve even lowered the rate for certain manufacturers, providing a major boost for private sector job creation. Simply put, this far-reaching plan puts jobs and money back into the hands of the people most likely to dig us out of this recession – the working, middle class.
But enough generalities – you want to know specifically what you can expect. If you file married with income between $40,000 and $150,000 or single with income between $20,000 and $75,000 your tax rate decreases from 6.85 percent to 6.45 percent. For couples filing married that earn between $150,000 and $300,000 and singles with incomes between $75,000 and $200,000, your tax rate is reduced from 6.85 percent to 6.65 percent. For high earner incomes over $1 million, $1.5 million, and $2 million for single, head of household, and married filers, respectively, the tax rate now stands at 8.82 percent. This is a decrease from the surcharge level of 8.97 percent that was due to expire at the end of this calendar year.
While it was enacted with unanimous bi-partisan support, it was not easy to come to a consensus, particularly with as sensitive a subject as taxes. There were certainly things in it that I would have done differently but there was enough there for middle-class taxpayers that warranted our negotiating. Besides, it’s time we recognize that no one group ever has all the answers. The worst economic downturn since the Great Depression hammered us equally, regardless of political ideology, and it called for bold action. We put partisan politics aside, taxpayers first, and formed a piece of legislation that is worthy of the citizens we represent. Your legislative body worked together in ways that perhaps no other legislative body in the country is, certainly not in a gridlocked Washington D.C.
As I’ve written here in the past, this newfound ability to get things done in Albany is a victory in and of itself. We’ve had a year of historical firsts. Working with Governor Cuomo we passed an on-time budget that erased a $10 billion deficit, instituted a property tax cap, established mandate relief and now have even lowered taxes for millions of New Yorkers.
I am reminded of Winston Churchill’s story of the prisoner, who was confined for 20 years to a dungeon until one day he happened to push the door of his cell which all the time had been unlocked, and walked out free into the open air. New York was a prisoner to her own inhibitions as well, perpetually locked in a “we’ve always done it this way” mentality. For too long we believed that we were doomed to dysfunction, so no one even tried. I thank my colleagues on both sides of the aisle for demonstrating what truly collaborative legislative effort can achieve.
I’ll be returning to Albany soon as there’s still much to do. It’s a work in progress but I can wholeheartedly say that New York is better today than it was a year ago and is getting better and stronger every day.
Jack Martins represents New York's seventh senatorial district.
Joseph Mirzoeff
7:40 am on Sunday, December 18, 2011
Our Board of Ed just passed retirement bonuses for teachers for the 5th straight year. They have already spent more than $600,000 on these. They continue to cut back services to students every year. In 2010 they agreed to an expensive 5-year contract that asked nothing for the students. They just created a new job, teachers mentoring teachers, a redundant service. They have just given raises to 3 ASST Superintendents whose base pay is higher than the Governor, Atty Gen'l and State Comptroller. Our Superintendent earns about twice what the Governor recommends and cashes in unused sick days. Our store fronts are emptying, I can no longer afford my home, my school tax went up 14% this year. As Chair to the Senate Committee on local Government, please help us.
fred
10:32 am on Sunday, December 18, 2011
While tax decreases are always appreciated, the reality is the overall taxes paid go up. A decrease on NYS income tax from 6.85% to 6.45% on a $100,000 saves $400 a year. This year my school taxes increased by $1,400. Mr. Mirzoeff is correct that until school spending is reined in, this lower tax rates do very little but make for great stories in local news outlets.
Union Fatcat
11:32 am on Sunday, December 18, 2011
I agree with the two above. School taxes support a ludicrous salary and benefits package for public employees. There's no concern what so ever for the students or the parents who pay the taxes to support our increasingly mediocrity schools. Ideas for dealing with the pending budget gap include cutting services to student and parents but all but ignore cutting salaries and benefits to teachers and school administrators. Enough is enough with public worker salaries, benefits and gold plated retirement packages.
Bob
4:45 pm on Sunday, December 18, 2011
I spell relief - Good Government. This means legislation openly debated, not decided in back room deals. This also means non partisan redistricting. Jack Martins, along with many Republicans, signed a pledge from Ed Koch to support nonpartisan redistricting. They have now backed away from this pledge and want to play politics with redistricting. I am sick of politics as usual. It's times to change the process now.
fred
8:12 am on Monday, December 19, 2011
Bob, I couldn't agree with you more about redistricting. I am just afraid that there is no such thing as an independent commission anymore. I just wish the Democrats 10 years when they controlled the redistricting would have pushed for an independent commission.
Archie Bunker
7:32 pm on Sunday, December 18, 2011
Another example of transparency in government. NOT !!!
Does anyone know if the school board can engineer its way around the 2% tax cap?
Bob
10:08 pm on Sunday, December 18, 2011
The school board can propose a budget with more than a 2% tax increase. However, it would need to be approved by 60% of the voters to override the tax cap.
Joseph Mirzoeff
7:22 am on Monday, December 19, 2011
The Board of Ed and administration have been deferring maintenance. This year they intend to float a bond for $5 - 10 million to fix roofs. Essentially what this does is capitalize what should have been operational expenses. This lack of currency in operational expenses, like the disappearing student services these last few years, and like the full budget increases, have been routed to compensation increases for teachers and administrators. So now administration and the Board of Ed plan to put this community needlessly in debt as well. All this for the sake of raising the compensation of already well-compensated, low accountability public service employees (in a monopoly) and in a difficult economy for the bill payer.