By Associated Press
Albany, NY – The Democrat-led state Assembly on Friday said it is proposing a $2.4 billion tax-cut package as part of its overall budget plan.
The Assembly's proposal -- which contains many differences from the one proposed by Republican Gov. George Pataki -- includes a tax credit of $300 for every child in a family under the age of 17. The full credit, to be phased in over three years, would go to families earning between $24,000 and $110,000 a year.
That plan counters a proposal made by Pataki that would provide a $500 per child tax credit for parents with children living in districts with underperforming schools for tutoring, after-school programs or for private school tuition. The governor's proposal applies to families earning no more than $75,000 a year.
Assembly Speaker Sheldon Silver, a Manhattan Democrat, said the Assembly is also seeking $900 million in property tax credits, elimination of the so-called marriage penalty tax and an end to the state sales tax on clothing and footwear under $110.
The governor has called for a total of $3.2 billion in property, income and business tax cuts to be phased in over the next few years as part of a total spending plan of $110.6 billion for 2006-07. Pataki's proposal includes $1.1 billion in business tax cuts.
Next week both the Senate and Assembly are expected to pass one-house spending bills that will lead to conference committee discussions where the real work of negotiating the state budget due April 1 begins.
The Republican-led Senate is calling for $8.4 billion in property, business and income tax cuts to be phased in over the next three years.