Broad-Based Tax Relief is a “Must” in New Plan

For the second time in recent months, governors from other states have visited New York to promote the advantages of working and living elsewhere.  Earlier this year, Texas Governor Rick Perry announced that the Lone Star State is Wide Open for Business on his barnstorming tour. And he had the proof to back it up — Texas has no personal income tax, corporate income tax or state property tax, and it was the top state for job growth in 2012. Today, Florida Governor Rock Scott opened the New York Stock Exchange and is here promoting his It’s Your Money $500 million tax cut agenda for the Sunshine State, whose residents already pay no personal income tax or state property tax.

To his credit, Governor Cuomo has stated himself that New York has no future as the tax capital of the world.  But in the same speech given nearly three years ago, the Governor also recognized the need for “deeds, not words, and results, not rhetoric.” With yet another last place business ranking from the Tax Foundation, indeed “there are no more baby steps,” and the newly-appointed special task force charged with cutting nearly $3 billion in business taxes has a mighty job.

There’s no shortage of ideas about ways to cut taxes and remove impediments to economic growth, but the task force should be careful to avoid the trap of political simplicity and focus on real solutions to the state’s fragile economic reality. What would a real solution look like? A plan that includes both corporate tax cuts and personal income tax reductions is a start. Any tax relief package that fails to include personal income taxes ignores the way that the majority of small business owners pay their business taxes.   Simply put, the more money those business owners pay in taxes, the less money they have to reinvest in their companies and create jobs.

The shrinking manufacturing sector, which lost about 160,000 or one- quarter of its jobs between 2001-2008, also should be at the top of the task force’s priority tax cut list. Although the 2013-2014 budget cut corporate taxes for ‘qualified manufacturers,’ it neglected to include many small manufacturers organized as subchapter S corporations. A similar tax cut for these small businesses would go far in preserving existing manufacturing jobs and creating new opportunities.

Let’s not forget that less than a year ago, the Governor created the New York State Tax Reform and Fairness Commission, which meets in private and had no input on last year’s budget, according to news reports.  The new high-profile tax cutting task force however expects to deliver a plan that will be the centerpiece of the Governor’s 2013-2014 budget.  Albany has made gestures to appease the small business community, but anything less than a comprehensive plan just isn’t going to cut it this time around.

About these ads

About Mike Durant

Mike Durant was named New York State Director of NFIB in May 2011. Prior to joining NFIB as the Assistant State Director in May 2010, Durant began his career in the New York Senate working in the Office of Member Services. From there, he served in a number of positions during former New York Governor George E. Pataki’s administration. As a Research Specialist in the New York State Office of Demographic Policy, Mike was responsible for drafting a redistricting proposal for Governor Pataki. In addition, Mike served as a Research Specialist for the Empire State Development Corporation, as well as the Associate Commissioner of Human Resource Management with the New York Department of Labor. Durant also spent four years working at the Questar III BOCES as a specialist focusing on the complex formulas that drive aid to school districts across the state while also taking a lead role in the state legislative/budget process as it related to education policy. These past positions have given Mike a deep understanding of the complex political economics of the State of New York. Active in the community, Durant has served on a number of boards in both the village of Ballston Spa and Town of Milton. Durant received his bachelor’s degree from Siena College in Loudonville, New York and resides in Ballston Spa with his wife and two children.
This entry was posted in New York, Small Business, Taxes and tagged . Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s