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Tax Cuts Will Boost New York’s Economy
by Assemblyman Willis Stephens
On the wake of the federal income tax refund program recently signed into law and similar initiatives by Assembly Republicans, the upstate New York economy will soon be getting a boost from consumers armed with refund checks.
Last month, President George W. Bush signed into law a remarkable 10-year, $1.35 trillion federal income tax cut. Refund checks will include up to $300 for a single taxpayer and up to $600 for married couples filing jointly. New Yorkers will receive over $89 billion of this refund.
In addition to the tax cuts, the legislation will double the child credit, from $500 to $1,000. It will also eliminate the "marriage penalty" by increasing standard deductions and broadening the 15 percent tax bracket for joint filers.
This influx of money will spur local economies. Many taxpayers will be spending their rebate checks at local retail outlets. If as little as 20 percent of these checks is spent in New York businesses, hundreds of millions of dollars in new revenue will flow into our state economy. This increase will allow businesses to expand, strengthening the economy and promoting job growth.
Assembly Republicans have also taken action to reduce taxes for New York state residents. The STAR 2 program builds on Gov. Pataki’s STAR program, allocating $500 million to help relieve homeowners of the burden caused by school property taxes.
The Co-STAR program seeks to provide tax cuts to income-eligible seniors and farmers. Under this proposal, a rebate of up to $50,000 in county property tax exemption would be provided to income-eligible senior homeowners. A $30,000 exemption would be available to income-eligible farmers.
These tax refunds will undoubtedly boost local economies and create new jobs, but there is a larger issue at hand. The principle behind these refunds is that the best person to spend the money is you. These refund checks are your money, the money you worked hard for. Now, it is being returned to you.
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