New Family Tax Credit Program to Alleviate Poverty
Addressing Affordability Challenges
New York state legislators are pushing for a $500 million allocation in the final budget to introduce a new family tax credit program aimed at alleviating poverty among low- and middle-income families statewide. While inflation has eased, New Yorkers continue to grapple with rising costs of essentials such as food, utilities, and rent.
Patrick Orecki, the Citizens Budget Commission‘s director of state studies, emphasized the pervasive affordability challenges across all income brackets in the state. He highlighted various factors contributing to New York’s overall unattractiveness in terms of cost of living. The Working Families Tax credit, which would provide $550 per child to single taxpayers making under $75,000 or married couples making under $130,000 annually, is proposed by the Senate to replace the Empire State Child credit. With a phase-in implementation over five years, this benefit progressively decreases by $20 for each extra $1,000 of income over the defined levels.
Working Families Tax Credit Proposal
The bill’s proponent, Senator Andrew Gounardes, highlighted how the proposed credit is flexible and may be used to help families in need by covering necessities like food, clothing, school supplies, and utility costs.
According to the Strong Economy for All Coalition‘s projections, the credit would encourage new spending totaling around $1 billion statewide, which would promote overall economic growth. The Assembly’s $500 million proposal aims to enhance the existing Empire State Child and Earned Income credits while broadening eligibility criteria to include more individuals by eliminating restrictive measures, such as caps on the number of children eligible for benefits.
Assembly sponsor Andrew Hevesi emphasized the efficacy of tax credits as poverty alleviation tools and expressed optimism about reducing poverty rates through legislative initiatives. Democratic lawmakers emphasize their commitment to addressing affordability concerns and supporting struggling New Yorkers through substantial budget allocations, emphasizing the necessity of investments in essential services.
Legislative leaders highlight the inclusion of provisions related to the Working Families Tax Credit in their budget proposals, marking a significant step towards addressing poverty at the legislative level. The legislation to establish the credit, proposed three years ago, has undergone amendments to facilitate a phased implementation over five years, with the Senate’s proposal providing funding for the first year.
The eligibility for the benefit extends to all tax-paying families in New York, including immigrants and non-citizen tax filers using an Individual Tax Identification Number, ensuring equitable access to the program.
Legislative leaders highlight the inclusion of provisions related to the Working Families Tax Credit in their budget proposals, marking a significant step towards addressing poverty at the legislative level. The legislation to establish the credit, proposed three years ago, has undergone amendments to facilitate a phased implementation over five years, with the Senate’s proposal providing funding for the first year.
The eligibility for the benefit extends to all tax-paying families in New York, including immigrants and non-citizen tax filers using an Individual Tax Identification Number, ensuring equitable access to the program.