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A09102 Summary:

BILL NOA09102
 
SAME ASNo Same As
 
SPONSORKolb
 
COSPNSRButler, Oaks, Hawley, Palmesano, Ra, Raia, Montesano, Graf, Blankenbush, McLaughlin, Giglio, DiPietro, Murray, Stec
 
MLTSPNSRCrouch, Lopez
 
Amd §606, Tax L
 
Relates to calculation of the earned income credit.
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A09102 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9102
 
SPONSOR: Kolb
  TITLE OF BILL: An act to amend the tax law, in relation to calcu- lation of the earned income credit   PURPOSE OR GENERAL IDEA OF BILL: New York State was an early implementer of a State Earned Income Tax Credit (EITC) program and offers one of the largest fully refundable supplemental credits in the nation. Initially set at 7.5 percent of the federal credit in 1994, the New York State supplement to the federal EITC has been raised six times since then, reaching 30 percent of the federal EITC in 2003. This bill would expand the New York State value of the EITC from 30 percent to 45 percent of the federal amount.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends the Tax Law by increasing the percentage of Earned Income Tax Credit to 45 percent. Section 2 authorizes this act to take effect immediately and apply to taxable years on and after January 1, 2016.   JUSTIFICATION: Recently in New York, discussions of raising the minimum wage have been higher than ever. At first glance, a wage increase seems incredibly beneficial for these individuals; however this is not the case. Being mandated to pay workers higher wages would be unaffordable for many businesses and would result in a significant amount of lay-offs for these low-income taxpayers. Expanding the Earned Income Tax Credit (EITC) is a much better alterna- tive because it would put more money in the taxpayers' pockets, boost the economy and create employment opportunities for the unemployed. Reports have suggested that expanding the EITC would lead to 14,000 jobless New Yorkers getting back to work, many of those being single mothers.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: This bill would increase economic activity in New York State, increase low-income family's incomes and reduce State tax revenue.   EFFECTIVE DATE: This act takes effect immediately and applies to taxable years beginning on and after January 1, 2016.
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