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Over the past 11 years, we've cut 19 different State taxes 81 times, injecting more than $140 billion into New York's economy, a feat that has spurred the creation of over 620,000 new private-sector jobs. But it's not just about putting the money back into the economy -- it's about putting money back into the pockets of seniors and families throughout our great State.
That is why I will work with the Legislature to continue cutting taxes in 2006 to ensure that homeowners and hardworking New Yorkers receive the tax relief they need to make their families and our State stronger.
In 1997, I worked to enact the STAR program, which has provided homeowners with real relief from school property taxes. To date, the unprecedented savings provided though the STAR program adds up to nearly $18 billion.
However, in recent years our efforts to provide property tax savings through this innovative program have been severely undercut by school districts across the State. Despite record infusions of State aid, districts continue to increase their spending and taxes at levels that far exceed the rate of inflation. The budget I have proposed will ease the financial strain seniors and families across the state are currently experiencing as a result of escalating school property taxes.
Currently the STAR exemption for New York's senior citizens is not indexed for inflation. This year let's protect seniors from inflation by making indexing retroactive. Under this proposal, in the 2006-07 school year, the current $50,000 Enhanced exemption for income-eligible seniors would be increased -from $50,000 to $56,800 - reflecting cost of living increases since STAR was created in 1997. Similar cost of living adjustments would be made automatically in future years. This new measure would save New York's seniors a total of $72 million and is estimated to increase the average senior homeowner's STAR benefit by more than 10 percent.
At the same time we must also encourage school districts to limit their spending increases to levels that homeowners can better afford. That is why I'm proposing a STAR-Plus $400 annual rebate check be mailed in October of this year to homeowners -- including seniors -- residing in school districts that adopt a new spending cap. The new cap would limit school spending increases to the lesser of 4 percent or 120 percent of the increase in the Consumer Price Index.
Exceptions to the spending cap would be allowed for increases in enrollment, capital projects, certified emergencies, and other special circumstances. As an incentive, school districts that abide by the cap, and successfully controls their spending, would receive a 2 percent bonus in State Flex Aid beginning in the 2007-08 school year.
But let's do even more for New York's working families - let's empower parents in under-performing school districts with a $500 tax credit for qualified family expenses to help boost their children's education. Let's abolish one of the worst inequities in our tax code by completely eliminating the notorious marriage penalty. Let's increase the income threshold where the top income tax rate applies from $40,000 to $60,000 for married taxpayers and from $20,000 to $30,000 for single taxpayers. Let's cut the top tax income tax rate from 6.85 percent to 6.75 percent. Let's help thousands of seniors pay for rising energy costs and provide them with a $500 heating fuel tax credit. And let's help New York's family farms and small businesses by eliminating the estate tax.
By reducing excessive tax burdens we can continue to stimulate economic growth in the Empire State. We have the opportunity to ensure that families across New York achieve even greater financial freedom and prosperity. I look forward to working with the Legislature so that we can turn these proposed tax cuts into reality and put more money back into the pockets of millions of hardworking New Yorkers.
For more information on tax cuts please visit www.ny.gov. 1-31-06
© 2005 North
Country Gazette
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