Posted at: 12/11/2013 2:04 PM
Updated at: 12/11/2013 6:13 PM
By: Berkeley Brean
Tonight we're taking a closer look at the ideas of Governor Cuomo's tax relief commission. The commission's report was released Tuesday.
Our question to you is...
- Would you rather get a break on your property taxes or income taxes?
In a nutshell, the commission says the state should use half of it's anticipated $2 billion dollar surplus in next year's budget (did you know we had a surplus?) to give tax credits to homeowners whose city, town, village, school district or fire district keep spending increases under 2%. Any increase in spending that homeowners have to pay for would be refunded in the form of that credit. (You'd see the money when you file your taxes).
Click here to read the report
The plan says the state should use the remaining surplus to give the same relief to homeowners in year two, provided that the homeowner's towns and villages (any public entity that you pay tax to) keep spending increases below a 2% cap and show "measures to reduce costs, such as sharing services with other jurisdictions or consolidating."
The commission's plan also recommends the state reduce the corporate tax and revamp the state's estate tax (also known as a "death tax.")
All of these idea require the approval of the state legislature.
Here is some of the criticism coming forward.
Click here to read the opinion piece of E.J. McMahon from the Empire Center for Public Policy
McMahon writes that the property tax relief idea "would deliver virtually no economic bang for the buck" and is a "gimmick." McMahon also questions how the state will determine if local taxing entities, like your town and village, are measurably reducing costs and sharing services.
McMahon favor cuts to personal income taxes, also known as PIT.