Written by Steve Israel Thursday, 17 April 2014 08:22
Brian and Amy are your typical middle-class New Yorkers. They’ve worked hard to build a comfortable life for their three children in Hicksville, and hoped to remain there to be near family.
However, every year during tax season they are hit by a bill from the federal government that makes them question if they will be able to continue living in such a high-cost area. Their story is all too familiar, and I wanted proof that we need to change the federal tax code to account for New York families facing some of the highest costs of living in the country.
To get an answer, I asked Third Way, a centrist think tank focused on middle-class issues especially relevant to families in our area, to actually crunch the data on how much New Yorkers pay in federal taxes compared to similar families across the country. The report, “A Tale of Three Cities,” compared the effects of the federal tax code on three typical middle-class families—one from Hicksville, another from Akron, Ohio, and a third from McAllen, Texas.
The numbers were striking. The data shows that New Yorkers pay more in federal taxes because the federal tax code does not account for differences in wages and costs of living across different regions. This means that many New York families who are solidly middle class, but may make more on paper than similar families elsewhere, do not qualify for many income-based tax credits.
For example, a worker in low-cost, low-wage McAllen, Texas, can qualify for tax credits to help with his child care costs, while a similarly hard-working New Yorker, who may earn more, but also pays more for everything from gasoline to groceries, can’t access the same amount of benefits. Applying the same tax code to families in vastly different circumstances makes no sense—even a Quarter-Pounder at McDonald’s costs $1 more in Nassau County than it does in McAllen.
Even worse, in an expensive area like New York, a working-class family can end up owing thousands of dollars on its federal tax return, while a nearly identical family in low-cost McAllen can end up receiving thousands in return.
This glaring inequality is just plain wrong. Regional differences in costs of living should be accounted for in the federal tax code.
Two bills I’ve introduced would help level the playing field for New York taxpayers. The Tax Equity Act would adjust tax brackets for all areas with a higher cost-of-living than the national average, and the Student Loan Employment Benefits Act would allow those working to set aside up to $5,000 of their salary, tax-free, to repay their student loans. I am also drafting legislation that would index future tax credits to regional costs of living.
These common-sense measures will strengthen the middle class and lay the foundation for New York’s future. It’s time to give New York’s taxpayers like Amy and Brian the fairness they deserve.
The full Third Way Report can be viewed at www.israel.house.gov.
Saturday, 26 July 2014 00:00
On Saturday, July 5, Building J on the Western Waterfront was opened to the public for a free concert of classical music played by talented youth in the Oyster Bay Music Festival. The acoustics in the large metal shed were lively as the backdrop of the Ida May, a wooden oyster dredge under construction, lent artisanal flavor to the rich stew of mostly sea-related musical selections. People sat on stacks and benches of freshly milled wood or stood in the cavernous space. They soaked in beautiful solos, duets and trios that combined voice, piano, flute, cello and violin. Frank M Flower & Sons provided fresh oysters that engaged the palate, and representatives from Steinway & Sons gave a quick overview of how their pianos are made, relating several aspects of their meticulous process to the construction of the Ida May.
Friday, 25 July 2014 00:00
Last week was one of Oyster Bay’s biggest, most anticipated summer events, the Italian American Society’s St. Rocco’s Festival. Returning to its usually spot in Fireman’s Field on Shore Avenue, the festival was filled with amusement rides, live music, and great food and company.
“We come every year to St. Rocco’s with friends,” said Laura Regan of East Norwich. “The rides and awesome food make it a lot of fun.”
Thursday, 24 July 2014 12:03
Oakcliff’s intensive training program provided a high level of competition last weekend at the U.S. Women’s Match Racing Championship in Oyster Bay.
This year, the teams selected for the event were highly ranked through the United States, and several of the competitors are past and current Oakcliff trainees, including Elizabeth Shaw, Kathryn Shiber, Madeline Gill, and Danielle Gallo.
Thursday, 24 July 2014 11:44
A total of 11 members of St. Dominic Track Team (grades 1-8) recently medaled at the Nassau-Suffolk CYO Championship Finals at Mitchel Field. In the finals, the athletes competed against the finalists from all three regions, representing more than 2,500 athletes from 23 other parishes.
In addition to the student athletes’ success, the track coaches were honored as well. St. Dominic CYO Track coaches Phil Schade (grades 1-3), Julie and Mike Keffer (grades 4-6) and Rich Cameron (grades 7-8) were selected by peer coaches in their region for the NSCYO Team Sportsmanship Award. The Saint Dominic CYO track program, in its second year, has already proven to be a force to be reckoned with and the young runners are among the best on Long Island.