Summary:

Proposed $1 billion tax cut for middle-class New Yorkers.
Income tax rates to reach their lowest in nearly 70 years.
Inflation Refund Checks of $300-$500 per household.
Massive expansion of the child tax credit.
Free school meals for all students across the state.

NYC Middle Class Tax Cut Proposed: A $1 Billion Relief Plan?

Governor Kathy Hochul recently proposed a significant tax cut in her 2025 State of the State address, aiming to provide nearly $1 billion in tax relief to over 8.3 million New Yorkers. This move could bring the state's income tax rates to their lowest point in almost 70 years.

This proposal targets five of the state's nine tax brackets, offering savings to taxpayers earning up to $323,000 for joint filers. The reduced rates would take effect immediately, impacting New Yorkers' paychecks this year.

More than just tax cuts

Hochul's affordability initiatives extend beyond this tax cut. Other key proposals include:

Inflation Refund Checks: A first-ever $3 billion payment plan, offering $300 for individuals earning up to $150,000 and $500 for families making up to $300,000 annually.
Expanded Child Tax Credit: A major expansion increasing the maximum credit per child to $1,000 for children under four and $500 for children aged four to 16, doubling the average credit received by families.
Free School Meals: Providing free breakfast and lunch to all 2.7 million students across New York, regardless of income, saving families around $165 per child monthly.

These measures aim to alleviate the financial strain of inflation and improve the lives of New Yorkers. The proposals are currently awaiting approval from the state legislature.

Source: SILive.com