Tax credits and reductions that will save New York families and businesses almost $1 billion, an increase in the minimum wage, and procedures to cut down on Medicaid fraud highlight the list of new state laws that will take effect on January 1, 2007.
The senate majority has fought to provide substantial relief to New York’s hardworking, overburderened taxpayers. On January 1, new laws will go into effect that will save New York’s families and businesses almost a billion dollars in taxes and will protect jobs and valuable industries like manufacturing. As we move forward into a new legislative session, we remain committed to building on our record by providing greater relief to the hardworking taxpayers of New York.
Child tax credit. In 2007, a taxpayer will be allowed a personal income tax credit equal to one-third of the federal child tax credit for children between the ages of four and seventeen, saving New York parents $600 million in 2007. The child tax credit gives assistance directly to parents, helping them meet the rising costs of classroom supplies and educational materials.
Lower taxes for couples. Beginning in 2007, married taxpayers will see an increase in their standard deduction to $15,000 for joint filers and $7,500 for separate filers, eliminating the “marriage penalty.” The tax reduction will save married taxpayers $41 million in 2007. Middle-class taxpayers can celebrate the New Year knowing that we have eliminated the unfair income tax marriage penalty.
Helping our voluntary firefighters. New York has 130,000 volunteer firefighter and emergency personnel. In order to encourage more New York residents to join their local volunteer fire departments, the legislature provided a $200 personal income tax credit for volunteer firefighters and emergency personnel not receiving a special local property tax exemption, saving them $26 million.
Saving jobs. On January 1, 2007, the second phase of a three-year plan will kick in that will help New York businesses and prevent the outsourcing of jobs by eliminating the single sales factor. The single sales factor is expected to save New York businesses $43 million in 2007, and $130 million when fully implemented.