File #: Res 0397-2022    Version: * Name: Authorizing a personal income tax deduction for student loan payments. (S. 5836/A. 5724)
Type: Resolution Status: Committee
Committee: Committee on Finance
On agenda: 11/22/2022
Enactment date: Law number:
Title: Resolution calling on the New York State Legislature to pass, and the Governor to sign, S. 5836/A. 5724, authorizing a personal income tax deduction for student loan payments.
Sponsors: Keith Powers , Shaun Abreu, Eric Dinowitz, Kalman Yeger , Shahana K. Hanif, Althea V. Stevens, Amanda Farías, Gale A. Brewer, Carmen N. De La Rosa
Council Member Sponsors: 9
Attachments: 1. Res. No. 397, 2. Hearing Transcript - Stated Meeting 11-22-22, 3. November 22, 2022 - Stated Meeting Agenda

Res. No. 397

 

Resolution calling on the New York State Legislature to pass, and the Governor to sign, S. 5836/A. 5724, authorizing a personal income tax deduction for student loan payments.

 

By Council Members Powers, Abreu, Dinowitz, Yeger, Hanif, Stevens, Farías, Brewer and De La Rosa

Whereas, According to a report by the Rockefeller Institute of Government (“Rockefeller Institute”), in May 2021, New York State (“State”) was home to nearly 2.4 million federal student loan holders, who carried about $90.3 billion in student loan debt collectively; and

Whereas, According to the Rockefeller Institute’s report, about half of those federal student loan holders owed more than $20,000 each; and

Whereas, The Rockefeller Institute’s report noted that average student loan debt was highest in New York City (“NYC”) in 2018, as compared to all other regions of the State; and

Whereas, The Rockefeller Institute’s report also noted that about 26 percent of bachelor’s degree graduates from The City University of New York (“CUNY”) left CUNY with student loan debt averaging $16,300 each, and that about 14 percent of associate’s degree graduates left CUNY with student loan debt averaging just under $10,800 each; and

Whereas, The NYC Department of Consumer and Worker Protection, the Center on Poverty and Social Policy, the Columbia Population Research Center, and Robin Hood produced a report in December 2021, entitled “Weighed Down: New Yorkers Share How Student Loan Debt Is Affecting Their Lives” (“Weighed Down”), which examined student loan debt in NYC, using data collected in 2019-2020; and

Whereas, “Weighed Down” reported that 1 in 6 NYC residents has student loan debt, and that these student loan holders were more likely to be Black, under 45 years of age, experiencing financial hardship, and more highly educated; and

Whereas, “Weighed Down” also reported that more than half of student loan holders in NYC owed more than $20,000 each; and

Whereas, “Weighed Down” also reported that 4 in 5 student loan holders in NYC had borrowed money for their own education, and over 1 in 5 had borrowed money for their child’s education; and

Whereas, “Weighed Down” also reported that many student loan holders in NYC struggled to repay their loans, and that about half had put off major life decisions, like buying a home, as a result; and

Whereas, S. 5836, introduced by State Senator Leroy Comrie and pending in the State Senate, would amend the tax law to allow a taxpayer with student loan debt incurred for the taxpayer, the taxpayer’s spouse, or the taxpayer’s dependent to take an above-the-line deduction of up to $5,000 in student loan debt not already covered by federal tax deductions and credits; and

Whereas, A. 5724, introduced by Assembly Member Jo Anne Simon and pending in the State Assembly, would provide the same personal income tax deduction for student loan payments, allowing taxpayers to use up to $5,000 per year in pretax dollars to repay student loans; now, therefore, be it

                     Resolved, That the Council of the City of New York calls on the New York State Legislature to pass, and the Governor to sign, S. 5836/A. 5724, authorizing a personal income tax deduction for student loan payments.

 

 

LS #10496

10/26/2022

RHP