Klein Takes on Taxes in Response to Federal Overhaul
Many middle-income residents have serious and justified concerns about the recent tax policy coming out of Washington and what it will mean for their bottom lines. Senator Klein has long been a champion of making New York a more affordable place to live and has been a leader in the fight to protect New Yorkers from any tax increase caused by the federal government.
In an analysis conducted in May of last year, Senator Klein found that the original proposed federal tax overhaul would have costed New York taxpayers an extra $21 billion and amounted to a double tax on them. In response, he called for a change in the state’s tax policy at the time that would ensure hardworking families are not hurt by the federal cap on deductions of State and local taxes (SALT) set at $10,000 and later included a comprehensive proposal in his One New Yorker budget agenda. By allowing residents to continue deducting state and local taxes as well as property taxes from their state tax bill above the $10,000 threshold, taxpayers would save at least $400 million.
Just this week, Senator Klein voted in favor of a bill that passed the State Senate unanimously which includes many of the benefits for taxpayers that he had originally proposed. The legislation will decouple the state code from the new federal tax ultimately saving New Yorkers from the $1.5 billion federal tax hike. It is now up to the State Assembly and the Governor to take action.
Senator Klein is also prioritizing the expansion of the Senior Citizen Homeowner Exemption, a program that has allowed numerous older New York City residents stay in their homes by eliminating up to half of their property taxes. The revamped abatement would offer a 50% deduction to those with incomes up to $50,000 while offering lesser deductions based on a sliding scale to those with incomes up to $85,000. By expanding this program for all of New Yorkers, even more of those on fixed incomes will be able to take advantage of these benefits.
For residents who are struggling the most, Senator Klein is proposing to completely eliminate the New York City personal income tax. This change would benefit some 2.2 million city residents with incomes below $50,000, saving them over $1,000 each year.
Follow Us