Triumph for the Middle Class
A huge victory has been won for middle class families all throughout New York State. In a Special Session of the Legislature, I was able to work closely with the Governor's Office and my colleagues in the Legislature to take steps towards closing New York's $3.5 Billion budget deficit and reduce the tax rates for the middle class to the lowest they have been in over 50 years. These measures will go a long way towards putting New York back on track and getting our fiscal house in order.
Restoring fairness to New York's tax code was absolutely the highlight of the Special Session. We were able to provide a tax cut to a total of 4.4 million New Yorkers, including a $690 million reduction for the middle class. This was accomplished by that implementing a more fair and progressive income tax structure which will not only allow the state give much needed tax relief to middle class families but also provide $1.9 Billion to help close our upcoming budget gap.
We were able to takes steps towards easing the tax burden on small businesses as well. Businesses with annual payrolls of less than $1.25 million will now be exempt from the MTA Payroll Tax along with all public, private and parochial schools. Also, tax credits were established that provide incentives for businesses to hire at-risk youth and for manufacturing companies to invest in New York. These are the types of forward thinking measures that will create jobs and send the clear message that New York is open for business.
While the economic plan that passed answered some major questions about the next fiscal year, it did not solve all our problems. It is only a good a good first step towards what we need to accomplish when writing next year's budget. We cannot expect to finish closing the budget gap, provide relief for struggling middle class families and encourage investment in New York without embracing these types innovative ideas.
Micah Z. Kellner