READER’S VIEW Income tax break for unemployed New Yorkers needed
I’ve said it before, and unfortunately, due to the continued actions of this governor and legislative majorities, I have to say it again: the “Empire State” is fast becoming the “Empty State” because New York leads the nation in high taxes.
New York is number one for outmigration of residents with 126,000 people leaving last year and over one million in the past decade. The state is ranked 50th in the nation for Tax Freedom Day when residents symbolically payoff all of their federal, state and local tax obligations and start keeping the money they earn.
And now, our state is poised to further this notorious distinction by ignoring tax relief on the federal level and taxing those that became unemployed through no fault of their own during the pandemic.
Two weeks ago, after my prodding, the Governor moved New York State’s income tax deadline from April 15th to May 17th to be in line with the federal government.
However, the Governor has refused to follow the federal government’s lead and exclude the first $10,200 of New York’s jobless unemployment benefits from 2020 taxable income.
According to the Department of Labor, 4.6 million New Yorkers received unemployment benefits since the start of the COVID-19 pandemic last year.
Those who faced unemployment this past year because of the pandemic have been struggling to pay their mortgages, put food on the table and provide for their families. Many have no job to return to because their businesses went belly-up.
They should not have to pay state taxes on the first $10,200 of their unemployment insurance when the federal government is giving them an income tax exemption on the same benefit.
That’s why I, and my Senate Republican colleagues, put forth a bi-partisan amendment on the Senate Floor on March 31st, legislation sponsored by Democrats and Republicans, Senate Bill S.5125A to provide jobless citizens with that tax exemption. Sadly, it was voted down by the Senate Democratic Majority.
The $10,200 in tax relief in this measure would cover 17 weeks of the $600 per week unemployment benefit. Several states have already exempted unemployment insurance benefits, including populated states such as California, New Jersey, Pennsylvania and Virginia.
I was hopeful that the tax exemption for unemployed citizens would make it into this year’s budget. It did not.
Instead, what was outrageously included in the budget by the Governor and Democratic Legislative Majorities was $2.1 billion in so-called unemployment assistance to those in New York State illegally and working illegally, but not one cent to match the federal $10,200 tax break for jobless New York citizens.
The state budget also continues to provide $420 million in film/TV tax credits for Hollywood billionaires, and other giveaways, but nothing for those in economic turmoil.
When taxpaying citizens who work hard, play by the rules, and do the right thing face such constant abuse from this downstate-driven state leadership it shouldn’t be a surprise that New York State continues to hemorrhage residents.
The Governor refuses to budge and do the right thing for jobless citizens. But the Legislature doesn’t need the Governor as we are a separate branch of government.
As May 17th approaches, both Majorities who control all levers of power in the Legislature now should let their intentions be known one way or another so all can file their taxes in a timely fashion and allow this legislation to move forward to provide relief to these beleaguered workers.