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New York Republican lawmakers have introduced a legislative package called "Keep What You Have Earned" in direct response to Governor Kathy Hochul's proposed $260 billion budget for fiscal year 2027. The GOP plan aims to cut taxes for New Yorkers across the board and impose a 2% cap on income taxes.
State Senate Republican Leader Rob Ortt and his colleagues argue that the governor's budget will cost taxpayers too much. The package includes several bills designed to reduce the tax burden on New York residents and businesses.
"You'd get better fiscal discipline if you gave your credit card to a 6-year-old and sent them into the M&M store in Times Square than you get out of Albany," said Senator George Borrello during the announcement. "We have to start living within our means, like we ask every family, every municipality, every business owner to do in New York State," he added.
The Republican plan includes several key components:
- A property tax freeze credit for homeowners outside New York City through 2028
- Making overtime pay completely tax-free for New York workers
- Lowering small business taxes
- Creating a new tax deduction for cash tips
- Requiring a two-thirds supermajority vote to pass any law raising taxes or fees
One of the centerpiece bills (S9110) would cut personal income tax rates over 10 years, creating a tax-free bracket that grows each tax season. By 2035, married couples would pay zero state tax on their first $100,000 of income. State Senator Steve Rhoads, who sponsored the bill, frames it as a "$5,000 annual tax cut" for New Yorkers according to news reports.
Another proposal (S5519) would have the state gradually absorb Medicaid costs from counties to bring property taxes down. The state would pay 10% more of Medicaid bills annually until covering the full cost by 2034.
The Republican package faces significant hurdles, as Democrats maintain supermajorities in both legislative chambers, and Governor Hochul is a Democrat. In her budget proposal, Hochul emphasized that her $260 billion spending plan comes with no increase in income taxes.
"The last four years we've proven something important, that you can make historic investments without raising income taxes, without mortgaging the next generation, without losing sight of what people can afford," Hochul said during her budget presentation in Albany.
The governor has stated she has no plans to raise taxes on New Yorkers to fund programs such as universal child care in her fiscal year 2027 budget.