Guest Columnist
New year will bring goodies to New Yorkers
By George Winner

We’ll soon ring in a new year with a wide variety of ceremonies and celebrations, so I thought I’d take this opportunity to preview a few of the news law taking effect on January 1, including an increase in the minimum wage, procedures to cut down on Medicaid fraud, and tax credits and reductions that will save New York’s families and businesses almost $1 billion.

On January 1, the minimum wage in New York State will be increased from $6.75 to $7.15 per hour. Additionally, the minimum wage rate for tipped food service employees will be increased from $4.35 to $4.60 per hour. This increase represents the third and final phase of an increase included in legislation enacted in 2004.

As mentioned in this space before, a law establishing a new, independent Office of Medicaid Inspector General was approved earlier this year. As part of this new law, effective January 1, 2007, the new inspector general is directed to establish regulations requiring each Medicaid provider to implement “Medicaid Provider Compliance Programs” in order to organize provider resources to resolve payment discrepancies, detect inaccurate billings as efficiently as possible, and impose checks and balances on the system to prevent future recurrences. It’s a meaningful beginning toward eliminating improper Medicaid spending and saving taxpayer dollars.

And speaking of saving taxpayer dollars, following are several of the many new tax cuts taking effect in 2007, including the:

Empire State Child Tax Credit that will provide a personal income tax credit equal to one-third of the federal child tax credit for children between the ages of four and seventeen, thereby directly saving New York parents $600 million next year;

 Elimination of the marriage penalty. Beginning in 2007, married taxpayers will see an increase in their standard deduction to $15,000 for joint filers and $7,500 for separate filers, eliminating the “marriage penalty.” This tax reduction will save married taxpayers $41 million in 2007;

 Personal income tax credit for volunteer firefighters and emergency personnel. There are approximately 130,000 volunteer firefighter and emergency personnel in New York. Many counties offer these volunteers a partial exemption against their property taxes. Beginning next year, a $200 personal income tax credit will be allowed for volunteer firefighters and emergency personnel not receiving the local property tax exemption, saving them $26 million. A related new law taking effect permits, upon the authorization of local school districts, an expansion of the property tax exemption for volunteer firefighters and emergency medical service providers to include school taxes;

 Single sales factor. On January 1, the second phase of a three-phase plan will take effect to help New York businesses and prevent the outsourcing of jobs. The single sales factor is expected to save New York businesses $43 million in 2007, and $130 million when fully implemented. The phasing in of the single sales factor is critical for New York businesses, especially upstate manufacturers. It will help businesses currently operating in New York to retain local employees, and it will encourage outside companies to locate here and create more jobs within New York;

 Exemption from sales tax of any military decorations, including ribbons, medals and lapel pins, when sold to a purchaser who is a veteran of the United States and presents proof of his or her veteran status to the vendor in the form of discharge papers or other official documentation, or an active member of the military if the purchaser presents proof or other official documentation of actual military service to the vendor; and

 Inclusion of land used in the production of Christmas trees as protected as an agricultural district.

Ongoing, substantial relief to New York’s overburdened taxpayers must remain a priority in New York government, and so I’m pleased that we’ll begin the new year with a new round of tax cuts. Tax relief remains a vital formula for stronger communities, a stronger economy, and expanded job creation.

The writer represents the 53rd District in the New York State Senate.