Hochul proposes cutting income taxes for middle-class New Yorkers

New York Gov. Kathy Hochul proposed cutting state income taxes for most residents as part of a sweeping populist agenda she planned to outline in her State of the State speech on Tuesday.

The speech revolved around a series of proposals, which Ms. Hochul called her “affordability agenda,” designed to appeal to struggling New Yorkers who voiced their frustration in November and weakened the Democratic Party’s grip on the state.

The tax cut, according to an information book released before her speech, will be given to those making up to $323,000 a year for joint filers, or 77 percent of state taxpayers. The move “would bring more than $1 billion in tax relief to more than 8.3 million taxpayers,” the briefing said.

Ms. Hochul also intends to cut taxes for parents, make school lunches free and give millions of New Yorkers discounts of up to $500, depending on their income.

It was not immediately clear how many of these proposed programs would be enacted or funded. But it was clear that she had the re-election of Donald J. Trump in mind as she drafted the address.

She highlighted proposals to protect the identity of doctors who prescribe abortion drugs and to add more state police to patrol the northern border. Expectant mothers would also qualify for a $100 monthly benefit during pregnancy; mothers on welfare would receive an additional $1,200 when their child is born.

However, the governor appeared to shy away from embracing the “resistance” fervor that characterized responses to Mr Trump’s first inauguration in 2017.

Ms. Hochul’s reluctance to do so, combined with her drive to afford affordability, may reflect the uncertainty of her own political future. Her popularity has plummeted in recent years, and rivals from both sides appear poised to challenge her in 2026.

One potential Republican candidate, Rep. Mike Lawler, who represents parts of the Hudson Valley, sided with state Legislature Republicans Tuesday morning and criticized the governor on a range of issues, including congestion pricing, which he said only adds to the burden on New York commuters. from York.

“She is a blameless and failed governor who needs to be replaced in 2026,” said Mr. Lawler, later adding that her speech Tuesday “is not about working across the aisle to make New York a better, more affordable, safer place to live.”

Last month, Siena College released a poll showing that only 33 percent of voters wanted Ms. Hochul re-elected, and about 39 percent had a favorable opinion of her. The poll also found that about 43 percent of New York voters think that reducing the cost of living should be a top priority for the Legislature this year. Creating more affordable housing was also high on the priority list.

Ms. Hochul appears to have tailored some of her State of the State proposals to those voter concerns. Her proposed “inflation refund” program would direct roughly $3 billion in excess sales tax revenue directly to New Yorkers.

And Ms. Hochul’s proposed expansion of the state child tax credit would more than double what some families currently receive. In recent years, New York’s poorest families typically received up to $330 per child. If the plan were to pass, eligible families could receive up to $1,000 in tax credits per child under 4. Families with children between the ages of 4 and 16 could receive a rebate of up to $500 per child.

Before the speech, Erie County Executive Mark C. Poloncarz applauded Ms. Hochul’s focus on bread-and-butter issues, but said she would have to continue pushing her agenda outside of the State of the State address to gain traction.

“One of the things you can’t do is make these big announcements, and that’s it,” he said. “People want to see and know their elected officials. They want to know more than just investing in accessibility issues, they want to know that you understand their issues in their communities.”

Mr. Poloncarz, a Democrat, added that the governor should have reminded people that “the Democratic Party is the party of the working class. We’re the ones who brought in Social Security, we’re the ones who designed Medicare. We are members of the Affordable Care Act, which the previous administration tried to eliminate.”

The proposed tax cuts and refunds come at a time when the state is considering how to close a multibillion-dollar hole in the financing of public transportation infrastructure improvements. Last month, Carl E. Heastie, the Speaker of the Assembly, and Andrea Stewart-Cousins, the Senate Majority Leader, rejected the Metropolitan Transportation Authority’s capital proposal, citing in part the plan’s $33 billion shortfall.

“Everything will have to be on the table,” Ms Stewart-Cousins ​​was responding to a question on Monday about whether new taxes were being considered to fund regional transport.

Ms. Hochul said in documents accompanying the speech that she wants “a balanced mix of federal, state, city and MTA contributions consistent with historical practice, along with new revenue sources to be agreed upon during budget negotiations this spring and cost efficiencies to be achieved through MTA”

Crime remains a pressing concern for New York voters, especially on the New York subway, where a series of violent incidents has drawn attention to rider safety. Ms. Hochul wants to fund more lights and barriers on platforms, along with the deployment of more law enforcement officers on trains. It also wants to streamline and streamline the way the discovery process works in preparation for trials.

He is expected to elaborate on his efforts to loosen standards for involuntary stays and expand laws related to court-assisted outpatient treatment for people with mental illness. New York City Mayor Eric Adams was a major proponent of the changes, saying they would go a long way toward addressing some perceived disruptions on trains and would help vulnerable people.

Brian Stettin, a senior adviser to Mr. Adams on serious mental illness, said in an interview that Ms. Hochul’s public comments were encouraging and showed the urgency of the issues facing outreach workers and others.

“Her comments were consistent with what is in our package,” he said. “But we are waiting to see the details.”

The governor will also propose spending $400 million to breathe new life into struggling downtown Albany, including $150 million for the aging New York State Museum. The proposed funding for the state capitol was previously reported by The Albany Times Union.

Jay Root and Maya King contributed reporting.