ALBANY – A new tax cut plan included in the New York State Senate’s one-house budget proposal seeks to give $3.5 billion in tax breaks for the middle class, which state legislators say would be a boon to taxpayers in counties like Chenango.
The proposal additionally includes tax cuts of more than $494 million for small businesses, and another $275 million for seniors.
The highlight of the plan, unveiled by the State Senate Republican Majority last week, is the Middle Class Income Tax Relief Program which proponents argue will bring the middle class tax rate to its lowest point in 70 years.
Existing middle class tax cuts are currently set to expire in 2018 which will increase the tax rate to 6.85 percent. The Republican Senate’s proposal not only eliminates this increase, but it also phases in a 25 percent tax rate reduction to 5.14 percent. When fully effective by 2025, lawmakers say this could save taxpayers an average $897 per year for a total of $3.5 billion annually by 2025.