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New York’s 2023 Budget to Include Tax Breaks for Middle Class and Small Businesses

By:
Ruth Singleton
Published Date:
Apr 8, 2022

iStock-450743923 New York Money

On Thursday, New York Gov. Kathy Hochul announced an agreement with state legislators on a 2023 budget, which will include tax breaks for middle class New Yorkers and small businesses. 

According to Accounting Today, Democratic leaders in the Legislature agreed to forgo $162 million in revenue by accelerating a scheduled reduction in personal income tax rates. Specifically, middle-class tax cuts scheduled to be fully phased in through 2025 would instead take effect by 2023—decreasing tax receipts by $162 million in that year while lowering the taxes for about 6.1 million New Yorkers. In addition, the budget agreement includes a new property-tax credit for 2.5 million eligible residents earning less than $250,000. 

Also in the budget is a six-month suspension of the state’s fuel tax that will save New Yorkers 16 cents a gallon and $287 million in child tax credits. In addition, the deal calls for allowing cannabis operations to qualify for tax deductions. 

The Legislature is able to afford these tax breaks because of the more than $26 billion that the state has received in pandemic recovery money, along with higher-than-anticipated tax collections Under the budget deal, state spending would grow by more than 3 percent over the prior year.  

According to Accounting Today, the budget is the largest-ever state spending plan. It came a week late, missing an April 1 deadline. Thus, legislators  had to pass a temporary extension to ensure that state employees got paid. Also notable during the announcement was that the governor stood alone at the dais to announce a deal, instead of being flanked by the Senate president and Assembly majority leader 

"As we make our comeback from the COVID-19 pandemic we are embracing this once-in-a-generation opportunity to usher in a whole new era for New York, with a bold budget that brings much-needed economic relief to New Yorkers and looks to the future with historic investments in education, health care and infrastructure," Hochul said in her statement announcing the agreement. 




On Thursday, New York Gov. Kathy Hochul announced an agreement with state legislators on a 2023 budget, which will include tax break for middle class New Yorkers and small businesses. 

According to Accounting TodayDemocratic leaders in the Legislature agreed to forgo $162 million in revenue by accelerating a scheduled reduction in personal income tax rates. Specifically, the budget agreement includes a new property-tax credit for 2.5 million eligible residents earning less than $250,000. In addition, middle-class tax cuts scheduled to be fully phased in through 2025 would instead take effect by 2023—decreasing tax receipts by $162 million in that year while lowering the taxes for about 6.1 million New Yorkers. 

Also in the budget is a $2.2 billion homeowner tax rebate; a six-month suspension of the state’s fuel tax that will save New Yorkers 16 cents a gallon; and $287 million in child tax credits. In addition, the deal calls for letting cannabis operations qualify for tax deductions. 

The Legislature is able to afford these tax breaks because of the more than $26 billion that the state has received in pandemic recovery money, along with higher-than-anticipated tax collections Under the budget deal, state spending would grow by more than 3 percent over the prior year.  

According to Accounting Today, the budget is the largest-ever state spending plan. It came a week late, missing an April 1 deadline. Thus, legislators  had to pass a temporary extension to ensure that state employees got paid. Also notable during the announcement was that the governor stood alone at the dais to announce a deal, instead of being flanked by the Senate president and Assembly majority leader 

"As we make our comeback from the COVID-19 pandemic we are embracing this once-in-a-generation opportunity to usher in a whole new era for New York, with a bold budget that brings much-needed economic relief to New Yorkers and looks to the future with historic investments in education, health care and infrastructure," Hochul said in her statement announcing the agreement. 

On Thursday, New York Gov. Kathy Hochul announced an agreement with state legislators on a 2023 budget, which will include tax break for middle class New Yorkers and small businesses. 

According to Accounting TodayDemocratic leaders in the Legislature agreed to forgo $162 million in revenue by accelerating a scheduled reduction in personal income tax rates. Specifically, the budget agreement includes a new property-tax credit for 2.5 million eligible residents earning less than $250,000. In addition, middle-class tax cuts scheduled to be fully phased in through 2025 would instead take effect by 2023—decreasing tax receipts by $162 million in that year while lowering the taxes for about 6.1 million New Yorkers. 

Also in the budget is a $2.2 billion homeowner tax rebate; a six-month suspension of the state’s fuel tax that will save New Yorkers 16 cents a gallon; and $287 million in child tax credits. In addition, the deal calls for letting cannabis operations qualify for tax deductions. 

The Legislature is able to afford these tax breaks because of the more than $26 billion that the state has received in pandemic recovery money, along with higher-than-anticipated tax collections Under the budget deal, state spending would grow by more than 3 percent over the prior year.  

According to Accounting Today, the budget is the largest-ever state spending plan. It came a week late, missing an April 1 deadline. Thus, legislators  had to pass a temporary extension to ensure that state employees got paid. Also notable during the announcement was that the governor stood alone at the dais to announce a deal, instead of being flanked by the Senate president and Assembly majority leader 

"As we make our comeback from the COVID-19 pandemic we are embracing this once-in-a-generation opportunity to usher in a whole new era for New York, with a bold budget that brings much-needed economic relief to New Yorkers and looks to the future with historic investments in education, health care and infrastructure," Hochul said in her statement announcing the agreement. 

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