Gov. Kathy Hochul proposes $1B middle-class tax cut in her State of State address
ALBANY — Gov. Kathy Hochul on Tuesday proposed a $1 billion middle-class tax cut and $3 billion in tax rebate checks, free community-college tuition for high-demand jobs such as nursing and technology, and free meals for all public school students as part of a plan to make New York more affordable and safer.
In addition to supporting more measures to combat climate change, Hochul in her fourth State of the State address said the state will take steps that could lead to its first expansion of nuclear power in decades. She also called for more uniformed police on subway platforms, including officers on night trains, after some high-profile, violent attacks in December.
The governor added up her proposed tax cut, tax rebate checks, tax credits and savings from free school lunches and estimated that a family of five would save $5,000 this year, if her ideas are enacted.
"Now, we are approaching $5,000 in real money back in your pockets," she said. "That's how we make New York more affordable."
This was an important stage for Hochul, who has been mired in low polls for most of her four years in office. In December, she had just a 39% favorability rating in the Siena College poll, compared with 49% who viewed her unfavorably. In the 2022 race, she fended off an unusually strong challenge by the Republican nominee, former Rep. Lee Zeldin. She is up for reelection in 2026.
Details on how Hochul plans to pay for these initiatives must await her budget presentation next week.
Hochul recalled her early years of her family scrimping to provide "Spam sandwiches on expired bread" to highlight her plan and commitment to make the state more affordable.
"Our future depends on the ability of every family to afford the essentials of life, and our ability to protect the safety and security of our residents," Hochul said. "Your family is my fight."
Hochul struck that chord repeatedly, noted Lawrence Levy, executive dean of Hofstra University's National Center for Suburban Studies.
"Both in terms of the proposals and her plainspoken tone, she was clearly reaching beyond the usual Democratic strongholds of New York City and the few Democratic enclaves around the state to more moderate, middle-of-the-road voters you often find in swing suburbs like Long Island and the mid-Hudson," Levy said.
Hochul’s focus on affordability and public safety mirrors some of the political platform that Republicans have used to make inroads in the last five years in elections.
"From endless taxes, migrant spending and out-of-touch energy mandates to name a few, Democrat-driven policies are driving this state into the ground," said State Senate Republican leader Rob Ortt, of North Tonawanda.
A key provision is Hochul's proposal to provide an income tax break for households making as much as $323,200 a year. She said it will save households hundreds of dollars a year for nearly 77% of taxpayers.
"The tax cut I propose today and will fight for in the coming months will deliver the lowest tax rates in 70 years and it will save hardworking taxpayers $1 billion," she said.
She also included her proposal for tax relief checks worth up to $500 to 8.6 million taxpayers this year. Joint tax filers who make less than $300,000 will get $500 checks, and single filers who make less than $150,000 will get $300 checks.
Hochul also called for tripling the child tax credit. It would provide a tax credit to income tax filers of up to $1,000 per child under 4 years old and up to $500 per child ages 4 to 16.
For schools, she said she will propose in her budget next week a solution to "the problem of smartphones and other internet-able devices in schools and create a new statewide standard for distraction-free learning," according to a document accompanying her speech.
She also proposed free meals for all public and private school students to improve the nutrition of students and reduce the cost of food for their families.
Assembly Speaker Carl Heastie (D-Bronx) said he believes Hochul has raised issues important to most New Yorkers.
"I think it kind of touched on everything that people have been concerned about," Heastie said. "We know that it’s become very unaffordable here recently with inflation being so high."
Senate Majority Leader Andrea Stewart-Cousins (D-Yonkers) also showed support for the ideas, but she wants to see the details in Hochul's budget presentation on Jan. 21.
"I was heartened by the speech. Of course looking at the budget will tell its own story, but I think it’s a good start," Stewart-Cousins said.
Hochul wants to provide free community-college tuition to help businesses hire workers ages 25 to 55 in jobs that are in demand, including nursing, teaching, technology and engineering. The state would pay for tuition, books and fees for those who qualify.
Hochul also said she will seek to band with other states to reduce the cost of Ozempic, Wegovy and other anti-obesity drugs and will direct the state Health Department to evaluate access to the drugs for Medicaid recipients who face a high risk of cardiovascular disease.
As part of her program to combat climate change, Hochul said the state will create a Master Plan for Responsible Advance Nuclear Development. She said that will guide any nuclear projects approved in the near future to reduce the cost of energy, while reducing reliance on the emissions of traditional power plants.
She said the state will support an effort by the owner of New York’s current nuclear plants for a federal planning grant to, as she stated in documents accompanying her speech, "explore the possibility of bringing a small modular reactor online."
The governor also proposed several public safety measures, including providing law enforcement greater authority to detain a person with mental illness who is determined to be a danger to themselves or the public. This follows several high-profile violent incidents in the New York City subways.
"We cannot allow our subway to be a rolling homeless shelter," she said. "We’ll surge law enforcement even more. I want to see uniformed police on the platforms, but more importantly, we will put an officer on every single train, overnight — 9 p.m. to 5 a.m. — over the next six months and the state will support these efforts financially. Because we have to stop the chaos."
She said she knows she will get a fight on this.
"We are deeply troubled about proposals to significantly increase the use of involuntary hospitalization and outpatient services mandates," said Harvey Rosenthal, CEO of The Alliance for Rights and Recovery. "These policies single out, scapegoat, and sweep away the rights and dignity of our neighbors with mental illness."
Hochul also called for barriers at 100 more stations along with bright lighting at every station by the end of the year. Modernized gates will be built to stop "shameless fare evaders" to make the subways "less chaotic" and save money.
ALBANY — Gov. Kathy Hochul on Tuesday proposed a $1 billion middle-class tax cut and $3 billion in tax rebate checks, free community-college tuition for high-demand jobs such as nursing and technology, and free meals for all public school students as part of a plan to make New York more affordable and safer.
In addition to supporting more measures to combat climate change, Hochul in her fourth State of the State address said the state will take steps that could lead to its first expansion of nuclear power in decades. She also called for more uniformed police on subway platforms, including officers on night trains, after some high-profile, violent attacks in December.
Read Gov. Kathy Hochul's State of the State proposals
The governor added up her proposed tax cut, tax rebate checks, tax credits and savings from free school lunches and estimated that a family of five would save $5,000 this year, if her ideas are enacted.
"Now, we are approaching $5,000 in real money back in your pockets," she said. "That's how we make New York more affordable."
WHAT NEWSDAY FOUND
- Gov. Kathy Hochul on Tuesday proposed a $1 billion middle-class tax cut and $3 billion in tax rebate checks, and free meals for all public school students as part of a plan to make New York more affordable and safer.
- In her fourth State of the State address, Hochul also said the state will take steps that could lead to its first expansion of nuclear power in decades.
- She also called for more uniformed police on subway platforms, including officers on night trains, after some high-profile, violent attacks in December.
This was an important stage for Hochul, who has been mired in low polls for most of her four years in office. In December, she had just a 39% favorability rating in the Siena College poll, compared with 49% who viewed her unfavorably. In the 2022 race, she fended off an unusually strong challenge by the Republican nominee, former Rep. Lee Zeldin. She is up for reelection in 2026.
Details on how Hochul plans to pay for these initiatives must await her budget presentation next week.
Hochul recalled her early years of her family scrimping to provide "Spam sandwiches on expired bread" to highlight her plan and commitment to make the state more affordable.
"Our future depends on the ability of every family to afford the essentials of life, and our ability to protect the safety and security of our residents," Hochul said. "Your family is my fight."
Hochul struck that chord repeatedly, noted Lawrence Levy, executive dean of Hofstra University's National Center for Suburban Studies.
"Both in terms of the proposals and her plainspoken tone, she was clearly reaching beyond the usual Democratic strongholds of New York City and the few Democratic enclaves around the state to more moderate, middle-of-the-road voters you often find in swing suburbs like Long Island and the mid-Hudson," Levy said.
Hochul’s focus on affordability and public safety mirrors some of the political platform that Republicans have used to make inroads in the last five years in elections.
"From endless taxes, migrant spending and out-of-touch energy mandates to name a few, Democrat-driven policies are driving this state into the ground," said State Senate Republican leader Rob Ortt, of North Tonawanda.
A key provision is Hochul's proposal to provide an income tax break for households making as much as $323,200 a year. She said it will save households hundreds of dollars a year for nearly 77% of taxpayers.
"The tax cut I propose today and will fight for in the coming months will deliver the lowest tax rates in 70 years and it will save hardworking taxpayers $1 billion," she said.
She also included her proposal for tax relief checks worth up to $500 to 8.6 million taxpayers this year. Joint tax filers who make less than $300,000 will get $500 checks, and single filers who make less than $150,000 will get $300 checks.
Hochul also called for tripling the child tax credit. It would provide a tax credit to income tax filers of up to $1,000 per child under 4 years old and up to $500 per child ages 4 to 16.
For schools, she said she will propose in her budget next week a solution to "the problem of smartphones and other internet-able devices in schools and create a new statewide standard for distraction-free learning," according to a document accompanying her speech.
She also proposed free meals for all public and private school students to improve the nutrition of students and reduce the cost of food for their families.
Assembly Speaker Carl Heastie (D-Bronx) said he believes Hochul has raised issues important to most New Yorkers.
"I think it kind of touched on everything that people have been concerned about," Heastie said. "We know that it’s become very unaffordable here recently with inflation being so high."
Senate Majority Leader Andrea Stewart-Cousins (D-Yonkers) also showed support for the ideas, but she wants to see the details in Hochul's budget presentation on Jan. 21.
"I was heartened by the speech. Of course looking at the budget will tell its own story, but I think it’s a good start," Stewart-Cousins said.
Hochul wants to provide free community-college tuition to help businesses hire workers ages 25 to 55 in jobs that are in demand, including nursing, teaching, technology and engineering. The state would pay for tuition, books and fees for those who qualify.
Hochul also said she will seek to band with other states to reduce the cost of Ozempic, Wegovy and other anti-obesity drugs and will direct the state Health Department to evaluate access to the drugs for Medicaid recipients who face a high risk of cardiovascular disease.
As part of her program to combat climate change, Hochul said the state will create a Master Plan for Responsible Advance Nuclear Development. She said that will guide any nuclear projects approved in the near future to reduce the cost of energy, while reducing reliance on the emissions of traditional power plants.
She said the state will support an effort by the owner of New York’s current nuclear plants for a federal planning grant to, as she stated in documents accompanying her speech, "explore the possibility of bringing a small modular reactor online."
The governor also proposed several public safety measures, including providing law enforcement greater authority to detain a person with mental illness who is determined to be a danger to themselves or the public. This follows several high-profile violent incidents in the New York City subways.
"We cannot allow our subway to be a rolling homeless shelter," she said. "We’ll surge law enforcement even more. I want to see uniformed police on the platforms, but more importantly, we will put an officer on every single train, overnight — 9 p.m. to 5 a.m. — over the next six months and the state will support these efforts financially. Because we have to stop the chaos."
She said she knows she will get a fight on this.
"We are deeply troubled about proposals to significantly increase the use of involuntary hospitalization and outpatient services mandates," said Harvey Rosenthal, CEO of The Alliance for Rights and Recovery. "These policies single out, scapegoat, and sweep away the rights and dignity of our neighbors with mental illness."
Hochul also called for barriers at 100 more stations along with bright lighting at every station by the end of the year. Modernized gates will be built to stop "shameless fare evaders" to make the subways "less chaotic" and save money.
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