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Monday, December 18, 2000
Senate Majority Leader Joseph L. Bruno announced today that more than $1.9 billion in new tax cuts will take effect beginning January 1, 2001, and throughout the coming year, to provide relief to taxpayers and to help create and retain jobs throughout the state.
"The Senate Republican Majority has a remarkable record initiating new tax cuts," Senator Bruno said. "When the new year begins new tax cuts will kick in to help people afford college, transition from welfare to work, reduce energy costs, and more. We have partnered with Governor George Pataki to enact new tax cuts every year for the past six years and we've made New York State the tax cut leader in the nation."
The tax cuts and tax credits that will take effect in 2001 include (a complete list is attached):
> COLLEGE BOUND -- The College Tuition Tax Deduction/Credit originally proposed by the Senate Majority, gives taxpayers the option of claiming an itemized deduction or receiving a tax credit to help offset their college tuition expenses. Taxpayers will save over $200 million annually when it becomes fully effective.
"The college tuition tax deduction will help families afford the cost of higher education for their children," Senator Bruno said. "This was a major Senate Majority tax cut priority, we fought for it for two years and we're very proud to see it take effect."
> EITC -- As of January 1, 2001, the Earned Income Tax Credit will be increased from 22.5 percent of the federal credit to 25 percent, putting $25 million more into the pockets of low income families and the working poor. This is part of a multi-year phase-in that will eventually raise the EITC to 30 percent of the federal credit.
"I've always said the best social program is a job," Senator Bruno said. "Increasing the EITC is an effective way to help the working poor and low income families successfully transition from welfare to work."
> POWER FOR JOBS -- The Power For Jobs program, which provides low cost power to businesses that create and retain jobs, will be extended for three more years and will provide an increased amount of low cost power, saving businesses $33.6 million in 2001-02. Power for Jobs has helped to create and retain more than 270,000 jobs in New York, since its inception in 1997.
> GROSS RECEIPTS TAX (GRT) -- To help reduce the cost of energy for residential and business customers throughout the state, a phase down and elimination of the GRT will begin in 2001, eventually saving ratepayers more than $330 million.
"The cost of energy keeps going up and there's no end in sight," Senator Bruno said. "That's why programs like Power for Jobs and the GRT elimination are so important to reduce the cost of energy to businesses and residential ratepayers. In the future we will pursue other programs and tax changes to reduce the burden of energy costs and encourage energy conservation."
> MARRIAGE PENALTY -- As of January 1st, the "marriage penalty" will be reduced for New York's married taxpayers by increasing the standard deduction for married couples who file a joint return, savings taxpayers more than $200 million when fully implemented.
> GREEN BUILDINGS -- Provides tax credits for the construction and rehabilitation of environmentally sensitive or "green buildings."
"The fact that New York has cut more taxes than the other 49 states combined and that we have created more than 760,000 new jobs speaks for itself," Senator Bruno said. "Tax cuts make New York more economically competitive, they result in new jobs and strengthen our economy. They help families afford increasing costs and put more money back in the taxpayer's pockets. You can count on it -- we will build on our tax cut record next year."
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