New York proposes inflation refund checks for taxpayers

New York Governor Kathy Hochul has proposed “inflation refund” checks to help taxpayers in the state. About 8.6 million residents are expected to benefit from these one-time payments, which total around $3 billion. Hochul hopes to ease the burden of rising living costs, explaining that sales tax revenue was higher than expected due to increased consumer prices. Single taxpayers earning up to $150,000 per year could receive a payment of $300. Families earning up to $300,000 may receive $500. All taxpayers are eligible for the refunds, regardless of homeownership or children. In Central New York, about 340,000 people are expected to qualify. The proposal has received mixed reactions from lawmakers as they begin budget negotiations. Hochul aims to finalize the budget by April 1. Some Senate Democrats suggested alternative plans, proposing income tax credits for seniors instead of general payments. If approved, Hochul stated that the state would start distributing the checks in the fall of 2025, but no exact dates were given. Many other states have offered similar rebates since the COVID-19 pandemic. For instance, California provided payments of $1,050 in 2022. Discussions are ongoing. While Assembly Democrats support the inflation refunds, Senate Democrats want to target seniors only. Some Republicans criticize the proposal as a political gimmick. Hochul's budget also focuses on other areas like safety, healthcare, and economic development as negotiations continue.