senate gop middle class family tax fairness act

7/29/2019 Senate GOP Middle Class Family Tax Fairness Act

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2013 Middle Class Family

Tax Relief & Fairness ActNEW YORK STATE SENATE

REPUBLICAN CONFERENCE


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2013 Middle Class Family Tax Relief & Fairness Act

The list of challenges facing middle class families is

long and growing:

A sluggish national economy;

Stagnant wages and eroding earning power;

A weak housing market;

Soaring gas prices;

Skyrocketing health care and tuition costs; and A Federal government that only seems to make

matters worse

To provide a major economic boost to New Yorks middle class

families, the Senate Republican Conference is advancing the 2013Middle Class Family Tax Relief & Fairness Act -- a comprehensive

package of tax relief and reform measures.

OVERVIEW: The Problem Facing New York Families


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DEPENDENT EXEMPTION:The Dependent Exemption will be increased from $1,000 to $2,020. It will allow a subtraction from grossincome for each dependent the taxpayer claims. The last time this was increased was 1987.

DEPENDENT CARE CREDIT:New York provides a tax credit to those taxpayers who incur child care expenses (daycare, after schoolprograms, etc.). This tax credit ranges from 110 percent to 20 percent of the federal dependent care credit,depending on the taxpayers income. The maximum amount of child care expenses that qualify for the Federal

credit is $3,000 per child. The last time the income thresholds for the credit were changed was in 1999.If this credit had kept up with ination, the income thresholds of the credit would have increased from$25,000-$65,000 to $40,000-$90,000. Taxpayers with child care expenses in excess of $500 would also beable to claim an additional New York dependent care credit of $500.

CHILD TAX CREDIT:

The State Child Tax Credit is equal to 33 percent of the federal child tax credit. The Federal credit could be upto $1,000 per child. In New York State if you have a child that is between the ages of 4 and 16 and income less

than $110,000 for married-joint lers, you can receive the credit. The last time this credit was amended was2006. If this credit had kept up with ination the maximum credit would have gone from $330 to $375.

RESTORING STAR REBATE CHECKS:

Before the Senate Democrats voted to eliminate the STAR Rebate Check Program in 2009, it provided real anddirect relief to millions of people across the state, many of whom pay the highest property taxes in the country.The Senate Republicans plan would restore the program, providing a major boost to seniors and middle classfamilies who are getting squeezed by high property taxes. Restoring STAR Rebate Checks would provide an

additional total of approximately $1.3 billion in tax relief.

KEY ELEMENTS: The Senate Republican Plan would increase tax breaks forthe middle-class that have not kept pace with ination and, in some instances,havent been adjusted for more than 25 years.



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Type of CreditOriginal ValueWhen Enacted

Current ValueAfter Ination

Value UnderSenate Plan

Dependent Exemption $1,000 $2,020

Child Tax Credit $330 $285 $375

Dependent Care $874 $517 $1,200


VALUE OF CREDITS AND EXEMPTIONS


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PROVIDING REAL RELIEF TO HARDWORKING FAMILIES

$2,204 $3,595

$802

Original Valueof Tax SavingsWhen Enacted

Current2013 Value

After Ination

Restored ValueUnder Tax Relief& Fairness Act


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Adjusted Gross Income Total Tax Savings Total % Savings

$25,000 $320 10.5%

$35,000 $730 40.9%

$45,000 $1,083 195.0%

$55,000 $1,036 252.4%

$65,000 $1,682 107.7%

$100,000 $812 21.3%

$150,000 $812 11.5%

$200,000 $816 7.9%

$250,000 $816 5.9%


TAX SAVINGS: MARRIED WITH 2 CHILDREN


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Adjusted Gross Income Total Tax Savings Total % Savings

$25,000 $548 40.2%

$35,000 $1,076 993.9%

$45,000 $1,096 145.0%

$55,000 $1,059 67.7%

$65,000 $1,376 54.5%

$100,000 $941 19.7%

$150,000 $943 11.7%

$200,000 $943 8.3%

$250,000 $943 6.4%


TAX SAVINGS: HEAD OF HOUSEHOLD 1 CHILD


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STAR REBATE CHECK PROPOSAL

STATEWIDE AVERAGEREBATE CHECK

STATEWIDE AVERAGESENIOR REBATE CHECK

$445

$460


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senate gop middle class family tax fairness act

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