Gov. Kathy Hochul Suggests $1B Reduction in Income Taxes in Her Drive for Post-Election Affordability
The moderate Democrat is advocating for tax cuts as they prepare for what appears to be a challenging reelection campaign next year.
TroibNews 
**ALBANY, New York** — Gov. Kathy Hochul has proposed a plan to cut state income taxes by $1 billion over the next two years, part of an effort to address voters’ economic concerns that contributed to the recent electoral successes of President-elect Donald Trump.
This initiative also aims to bolster Hochul's political standing as she prepares for her reelection campaign in 2026.
In her fourth State of the State address delivered at a performing arts venue near the state Capitol, Hochul unveiled the tax plan. The agenda, featured in a 140-page briefing book, emphasizes practical financial issues, signaling that the governor is responding to the implications of the presidential election.
Among her proposals are initiatives to tackle child care costs, enhance public safety in mass transit, and make home buying more accessible in a state known for its high living costs. The tax cut, her most significant proposal that requires legislative approval, is expected to benefit around 8.3 million taxpayers, including joint filers earning up to $323,200. Rates would decrease across five of the state's nine tax brackets.
“Let me say this — a state of the state address can be full of flowery rhetoric and still fail to address the needs of the people,” the governor stated in her prepared remarks. “I believe it needs to be much more than just lofty words. It should be a concrete blueprint that will deliver actual results that the people will feel.”
Hochul's position is delicate, as her persistently low approval ratings have prompted potential challengers from both parties, including New York Reps. Mike Lawler, a Republican, and Ritchie Torres, a Democrat.
In recent weeks, Hochul's office has rolled out various proposals, such as expanding free school lunches for students and introducing a $3 billion tax rebate plan aimed at countering inflation and deterring private equity firms from purchasing single-family homes.
Her agenda also includes measures to tackle drugged driving, address the economic impacts of artificial intelligence on workers, and implement safety protocols to prevent child drowning. The policy book features the words “streamline” and “unlock” repeatedly, indicating efforts toward efficiency.
Tax cuts resonate with New York Democrats as they seek to regain their footing following Trump’s election.
New York City Mayor Eric Adams, facing tough reelection challenges this year, has pushed to eliminate the city’s income tax for individuals earning less than $46,000, a move Assembly Speaker Carl Heastie has expressed support for.
Further details of Hochul’s tax plan are expected to emerge with her upcoming budget proposal, which is set to be finalized by April 1, marking the beginning of New York’s fiscal year.
Before Hochul addressed the audience, Lawler criticized her for endorsing a $9 toll program for vehicles entering Manhattan below 60th Street, which commenced this month. At a news conference with state Republican leaders in Albany, he labeled the governor “a feckless and failed governor who needs to be replaced in 2026.”
Lawler indicated he would decide this year whether to run for governor in a state that has not seen a Republican elected for over twenty years. “I’ll do everything in my power to make sure she is not governor in 2026,” he remarked.
Hochul’s complete briefing book is accessible for review. Some notable highlights include:
— A significant part of her agenda emphasizes reducing bureaucratic obstacles. She aims to introduce self-service kiosks for various programs, digitize the process for youth working permits, streamline utility line relocation during MTA construction, and allow local governments to collaborate with the Dormitory Authority of the State of New York.
— The governor proposes several initiatives to support new parents, which include providing $100 a month to under-resourced households during pregnancy and $1,200 checks upon birth. She seeks to establish a “Child Care Substitute Pool” to prevent daycare closures due to staff shortages, in addition to proposing $100 million for constructing new daycare facilities.
— Hochul plans to make tuition at SUNY and CUNY community colleges free for students 25 and older pursuing associates degrees in high-demand fields, including nursing, education, technology, and engineering.
— Her housing strategy includes regulating algorithmic pricing on websites, introducing new rules on overdraft fees, and promoting affordability with proposals for starter homes and state assistance for down payments. She also advocates for a 75-day waiting period for institutional investors bidding on single-family homes for sale.
— As previously mentioned, Hochul aims to “address critical gaps in the standards for involuntary commitment” for individuals experiencing mental health crises. Her public safety agenda features changes to the state’s discovery law, enhanced support for child victims of crime, and stricter measures against driving under the influence of marijuana.
— The governor is proposing a $200 million investment to revitalize downtown Albany, including an overhaul of the New York State Museum.
— Continuing her efforts to limit children's screen time, Hochul plans to include her proposal for banning internet-enabled devices in classrooms in her budget and aims to allocate grants of up to $15 million to community centers as part of a “Get Offline, Get Outside” initiative.
Aarav Patel for TROIB News
This initiative also aims to bolster Hochul's political standing as she prepares for her reelection campaign in 2026.
In her fourth State of the State address delivered at a performing arts venue near the state Capitol, Hochul unveiled the tax plan. The agenda, featured in a 140-page briefing book, emphasizes practical financial issues, signaling that the governor is responding to the implications of the presidential election.
Among her proposals are initiatives to tackle child care costs, enhance public safety in mass transit, and make home buying more accessible in a state known for its high living costs. The tax cut, her most significant proposal that requires legislative approval, is expected to benefit around 8.3 million taxpayers, including joint filers earning up to $323,200. Rates would decrease across five of the state's nine tax brackets.
“Let me say this — a state of the state address can be full of flowery rhetoric and still fail to address the needs of the people,” the governor stated in her prepared remarks. “I believe it needs to be much more than just lofty words. It should be a concrete blueprint that will deliver actual results that the people will feel.”
Hochul's position is delicate, as her persistently low approval ratings have prompted potential challengers from both parties, including New York Reps. Mike Lawler, a Republican, and Ritchie Torres, a Democrat.
In recent weeks, Hochul's office has rolled out various proposals, such as expanding free school lunches for students and introducing a $3 billion tax rebate plan aimed at countering inflation and deterring private equity firms from purchasing single-family homes.
Her agenda also includes measures to tackle drugged driving, address the economic impacts of artificial intelligence on workers, and implement safety protocols to prevent child drowning. The policy book features the words “streamline” and “unlock” repeatedly, indicating efforts toward efficiency.
Tax cuts resonate with New York Democrats as they seek to regain their footing following Trump’s election.
New York City Mayor Eric Adams, facing tough reelection challenges this year, has pushed to eliminate the city’s income tax for individuals earning less than $46,000, a move Assembly Speaker Carl Heastie has expressed support for.
Further details of Hochul’s tax plan are expected to emerge with her upcoming budget proposal, which is set to be finalized by April 1, marking the beginning of New York’s fiscal year.
Before Hochul addressed the audience, Lawler criticized her for endorsing a $9 toll program for vehicles entering Manhattan below 60th Street, which commenced this month. At a news conference with state Republican leaders in Albany, he labeled the governor “a feckless and failed governor who needs to be replaced in 2026.”
Lawler indicated he would decide this year whether to run for governor in a state that has not seen a Republican elected for over twenty years. “I’ll do everything in my power to make sure she is not governor in 2026,” he remarked.
Hochul’s complete briefing book is accessible for review. Some notable highlights include:
— A significant part of her agenda emphasizes reducing bureaucratic obstacles. She aims to introduce self-service kiosks for various programs, digitize the process for youth working permits, streamline utility line relocation during MTA construction, and allow local governments to collaborate with the Dormitory Authority of the State of New York.
— The governor proposes several initiatives to support new parents, which include providing $100 a month to under-resourced households during pregnancy and $1,200 checks upon birth. She seeks to establish a “Child Care Substitute Pool” to prevent daycare closures due to staff shortages, in addition to proposing $100 million for constructing new daycare facilities.
— Hochul plans to make tuition at SUNY and CUNY community colleges free for students 25 and older pursuing associates degrees in high-demand fields, including nursing, education, technology, and engineering.
— Her housing strategy includes regulating algorithmic pricing on websites, introducing new rules on overdraft fees, and promoting affordability with proposals for starter homes and state assistance for down payments. She also advocates for a 75-day waiting period for institutional investors bidding on single-family homes for sale.
— As previously mentioned, Hochul aims to “address critical gaps in the standards for involuntary commitment” for individuals experiencing mental health crises. Her public safety agenda features changes to the state’s discovery law, enhanced support for child victims of crime, and stricter measures against driving under the influence of marijuana.
— The governor is proposing a $200 million investment to revitalize downtown Albany, including an overhaul of the New York State Museum.
— Continuing her efforts to limit children's screen time, Hochul plans to include her proposal for banning internet-enabled devices in classrooms in her budget and aims to allocate grants of up to $15 million to community centers as part of a “Get Offline, Get Outside” initiative.
Aarav Patel for TROIB News
