By Hank Russell
A local state senator is looking to push through a bill that he says will offer residents “the largest tax cut in state history.”
Steven D. Rhoads (R-Levittown) recently introduced The Taxpayer Rescue Act, which he says will put money back in the pockets of hardworking families. It is part of the Senate Republicans’ “Keep What You Earned” legislative package. The legislation calls for eliminating the state personal income tax on the first $50,000 for single filers and $100,000 for married filing jointly and lowering the tax rate to 4% for single filers up to $250,000 and $500,000 for married filing jointly.
This proposal would also provide a personal income tax cut for all New Yorkers. Any single filer making $50,000 or less and couples making $100,000 or less would no longer pay any state income tax. This would result in $37 billion in tax relief to New York residents over its 10-year implementation without having to cut funding from vital state programs, as its cost would be absorbed through the natural growth of the economy.
During a press conference, Rhoads pointed out that the state has increased spending by $89 billion since 2019, eclipsing the amount it collects in personal income taxes. “Had they simply exercised fiscal discipline, you wouldn’t need a state personal income tax at all, and the result of doing that is predictable,” he said.
As a result, “we continue to hemorrhage talent, we hemorrhage economic activity and we hemorrhage productivity as citizens flee to states with lower tax burdens and more opportunities for their families,” Rhoads said, citing a City Journal report that more than 1 million residents have fled the state since 2020.
“New Yorkers are rejecting big taxes, big spending, big bureaucracy with their feet and New York is the worst for it,” Rhoads added.
Among the local co-sponsors are Patricia Canzoneri-Fitzpatrick (R,C-Valley Stream) and Alexis Weik (R-Sayville). Last week, Rhoads requested a notice of committee consideration for the bill. (It is currently sitting with the Budget and Revenue Committee.)
“New York has the highest personal income tax burden in the nation, and Albany’s lack of fiscal discipline, over-regulation, and poor policy choices have made the American Dream unaffordable for families across our state,” Rhoads said. “One-time gimmicks like $200-$400 ‘inflation rebate checks’ do nothing to fix the problem. Our Keep What You’ve Earned legislative package flips the script. My bill delivers the largest personal income tax cut in New York history.”