"A government big enough to give you everything you want, is big enough to take away everything you have"
Thomas Jefferson

Tuesday, October 7, 2008

Tax Cap vs. Circuit Breaker in the 118th Assembly Race

The tax cap and circuit breaker philosphies have been debated in the 48th Senate district race and now the issue is finally rearing its head in the 118th Assembly race.

Cantwell supports the tax cap, while Addie Jenne Russell favors the circuit breaker plan. Cantwell is correct, the tax cap works and the circuit breaker plan does not work for Northern New York residents.

The Cantwell press release would have been posted here, but frankly it is a convoluted piece of crap. (Note to Bobby, your news person needs to be fired)

Here is a rule of thumb. If you pay around $25 in taxes per $1000 of assessed value, then the assessed value of your home has to greater than twice your income before you receive a benefit.

But remember, you only receive 25% credit on anything above the circuit breaker amount which is likely less than your STAR benefit.  

Here is the simple math example;

A person living in a home assessed for $60,000 that has a total tax rate around $26.00 per $1000 value, pays approximately $1560.00 in taxes, if that person earns more than $31,200 they are not eligible for a benefit.

14 comments:

HQ said...

Lets bring in the truth squad in here.
The very simple reality is with the 'circuit breaker' concept is income based. Therefore, if you have a very high income you don't get as big a break on property taxes as someone with a vastly lower income. That is the reality of the tax cap vs. circuit breaker.
People such as IV, the Cantwells and other big earners call this
logic the dreaded 'redistribution of wealth' while people like me simply call it social fairness.
I'm with you Addie.

Anonymous said...

C'mon, lets use some real numbers too. The circuit breaker includes all your taxes, your local, town, county, library, school property, ect.. Youre telling me that you add all of those taxes up and its only $25/$1000 assessed? Let me know where you live, because I want to move there.

Also, where is he getting these numbers from, the median home value is atleast 80-100k and the median household income is slightly over $40k. The circuit breaker will work for this area if you use REAL data.

Anonymous said...

The circuit breaker would not eliminate the STAR rebate, you would recieve a rebate ON TOP of your STAR rebate.

Anonymous said...

First you dicker around with Lee memorial in Oswego, now you want screw up the chance for circuit breaker. I can't vote for Addie but here we are looking support of it since it helps our low assessed county. I hope smart voters are keeping an eye on what your blog and your GOP bums of the JeffCo board is feeding. You are not doing us much good.

Anonymous said...

The circet breaker WILL elimainate the Star rebate and the check you will be getting in the mai this week. Would you rther have a check that you can cash or a PROMISE of a tax credit?

Anonymous said...

tf : define "very high income". Is a guy who makes $50,000 with one child making less than a guy with six kids making $150,000?

Danny M. Francis (Eyepublius) said...

Allow me to jump in the middle of DD and IV, this way. I call it the "trough of enlightenment:" LOL

SUBJECT: State Assembly's "Circuit Breaker" and "Millionaire's Tax"

* The Circuit Breaker

A “circuit breaker” caps the amount of residential property taxes an individual pays when the taxes reach a certain percentage of his/her income. The tax relief is via a tax credit on their state income tax return. The Assembly’s passed bill sets the percentage, or where the
“circuit breaker” kicks in, at different levels depending on income. The amount of the tax credit also varies according to income.

EXAMPLES:

1. Taxpayers with incomes at or below $90,000/year would be eligible for a refund of 25% of the amount of all real property taxes that exceed 5% percent of their income.

2. Taxpayers with incomes between $90,000 and $125,000/year would be
eligible to receive a refund of 20% of the amount of all real property taxes that exceed 6% of their income.

3. Taxpayers with incomes above $125,000, but not more than $250,000 per year would be eligible for a refund of 15% of the amount of all real property taxes that exceed 7% percent of their income.

4. Taxpayers with incomes over $250,000/per year are not eligible for a tax credit.

5. Renters are eligible to a similar tax reduction based on the relationship between income and rent.

* The Millionaires Tax

To raise additional state revenue to cover the cost of the tax credits in the circuit breaker program, the Assembly bill adds two additional tax brackets to the personal income tax for taxpayers earning more than $1 million annually.

Specifically:

1. Taxpayers earning between $1 million and $5 million would be subject to a new tax rate of 7.85% on all of their income.

2. Taxpayers with incomes above $5 million annually would be subject to a new tax rate of 8.6% on all income.

My Own Summary: What's in your wallet and where do most of us fit?

I hope it's helpful.

Anonymous said...

Well, if anonymous IV's math says its so...it MUST BE!

Anonymous said...

#5 - Check your facts. Look at the Assembly's proposal then reply. There are many circuit breaker proposals out there, some eliminate the STAR some dont. The one she supports would NOT eliminate the STAR, you would get this rebate ON TOP of the STAR check you already recieve.

Fact checking is key, dont post unless you know the facts. Thanks.

Danny M. Francis (Eyepublius) said...

To be fair - mulling in the NYS Senate:

The State Senate’s Mandate Relief Package

The Senate bill contains several measures designed to allow districts to defray school district costs and reduce the impact of state mandates.

* The measures include:

• Allowing BOCES Aid on cooperative maintenance services,

• Allowing small districts to share school superintendents,

• Making permanent current consolidation incentive aid,

• Banning mandates on school districts that impose costs of
$10,000 or more for an individual district or $1 million in the
aggregate,

• Delaying the implementation of any district cost-baring regulatory mandate adopted after the school budget vote until the
next school district fiscal year,

• Calling for the reduction of irrelevant and redundant reports and paperwork,

• Establishing a state grant program to reimburse school districts for year-to-year TRS contribution increases above 4%,

• Providing building aid incentives for districts that construct joint facilities,

• Establishing a Blue Ribbon Commission to make recommendations for reducing the cost of unfunded mandates by May 2009, and

• Establishing a limited moratorium on residential property
assessment increases for primary homes and a Blue Ribbon Commission to make recommendations for increasing the
fairness, uniformity, and stability of assessing practices by February 2010.

Now we shall see, right (or left)?

Anonymous said...

Here is a website to run numbers on http://nyspropertytaxreform.org/Calculator-TM.html

Let's plug in say $50,000 for a household income. This household must pay over $3000 in taxes to get any relief. How many families that bring in $50K a year have a house valued over $225,000 or $175,000 if you live in a village? Putting the plan on paper sounds good when you read it but when you actually run the numbers you better be living outside what you can actually afford to get any benefit from the circuit breaker. So who does this benefit, someone who says "I will buy a bigger house than I can afford because I get money back to cover the difference, yet I can't afford to heat it or pay the electricity on it BUT I have a nicer house because I get money back!" Oh and by the way if you do actually run the numbers, in case none of you have been watching the news, if you make $50K you CAN'T get a mortgage for over $100K anymore! AND if you tax the rich who own the businesses that us poor people shop at where do you think that they will make up the difference. On us I would guess. Run the numbers don't just blow smoke.

Anonymous said...

Please don't bring David Renzi to Oswego to get rid of any hope for the breaker.

Anonymous said...

Did Darrel pay back the money?

Anonymous said...

IV, do you dislike Bobby now? He said some very good true things about Senator Aubertine in the Watertown Times today. I think its time for you to start bashing Bobby, he should have known better.

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