State Senate Republicans this week proposed reviving the state’s property-tax rebate program and providing other tax credits, which would cost about $2 billion. The package would also boost the dependent tax exemption from $1,000 to $2,020 per dependent; raise the percentage range of the federal child-care credit; increase the maximum child tax credit from $330 to $375; and provide an additional $500 child tax credit and increase the value of the dependent care credit.
The state has a $1.3 billion budget deficit. Senate Republican Leader Dean Skelos of Nassau County recommended that Gov. Andrew Cuomo use some of the $2.5 billion in economic-development funds in his $136 billion budget proposal to fund the tax breaks.
GOP senators said tax breaks have not kept pace with inflation. In some cases, they haven’t been adjusted for more than 25 years.
“Federal payroll taxes went up, paychecks got smaller, the cost of health care, gas and tuition have gone through the roof, and family budgets are squeezed even tighter,” Skelos said in a statement. “Just when families find a way to make ends meet, somebody moves the ends.”
Republicans share control of the Senate with Democrats, and it’s unclear whether Democrats would support the package of legislation. Democrats control the Assembly.
What do you think of the proposal?