(The Center Square) — Millions of New Yorkers could be getting “inflation reduction” checks next year from the state as part of a new plan pitched by Gov. Kathy Hochul to offset the impact of higher prices for food, gas and other necessities.
In a highlight of her upcoming State of the State address, Hochul said she plans to ask the state Legislature to approve a plan that would distribute $3 billion in direct payments to 8.6 million taxpayers, if approved. Hochul said funding for the plan would come from excess sales tax collections, which she said have exceeded historical averages.
“Because of inflation, New York has generated unprecedented revenues through the sales tax — now, we’re returning that cash back to middle class families,” the Democrat said in a statement. “It’s simple: the cost of living is still too damn high, and New Yorkers deserve a break.”
Under the plan, single taxpayers who make up to $150,000 per year would receive a one-time payment of $300, while joint tax filers making up to $300,000 per year would get a payment of $500, according to the Hochul administration, which said the payments would go out next fall.
New Yorkers who recently filed tax returns will be eligible for the payment, the Hochul administration said. Taxpayers who are single, head of household, or married filing separately will be eligible if their income is no greater than $150,000. Resident couples filing jointly will be eligible if their income is no greater than $300,000, the administration said.
The plan is one of several proposals she plans to unveil in her annual speech to lawmakers in the Assembly chamber in Albany early next month. She boasted that her “money in your pockets” campaign has delivered more than $5.5 billion in supplemental payments, tax relief and rebates, as well as expanding access to child care assistance and paid leave for families and pregnant women.
Hochul’s plan was praised by labor unions, and advocates said it would help ease the lingering pinch of inflation, which has risen to record levels over the past two years.
“Rising rents, utility bills, grocery prices and child care costs are pushing families to their breaking point,” Grace Bonilla, president and CEO of United Way of New York City, said in a statement. “We witness these challenges every day and this refund is the type of direct investment needed to provide relief.”
