The Pataki-McCall Tax Commission, appointed by Governor Cuomo and charged with the task of offering recommendations on cutting taxes in New York has announced their findings.
Within this report are recommendations that will help small businesses, such as reforming the estate tax and also some recommendations that should give us pause like implementing a “circuit breaker”.
What is disappointing is the lack of broad personal income tax relief. With so many small businesses set up as “pass-through” entities, a PIT reduction is crucial to their survival in such a high tax state. Also, shouldn’t comprehensive mandate relief be used instead of a “circuit breaker” tax shift?
Assuredly, these recommendations will be implemented within Governor Cuomo’s 2014-15 Executive Budget proposal in January and a fierce topic of debate the next few months. Stay tuned…
NFIB/NY’s initial response is below.
“The McCall-Pataki Tax Commission report incorporates many items that have long been on NFIB’s legislative agenda. Reforming New York’s estate tax is crucial to maintaining our family owned small businesses and family farms. Cutting taxes for manufacturer’s and lowering the corporate rate will also move New York forward in economic competitiveness. Our hope is that these recommendations will be part of Governor Cuomo’s 2014 executive budget proposal and we applaud the administration for taking a comprehensive look at cutting taxes in New York.
“We do, however, have concerns regarding the recommendations on the topic of property tax relief. NFIB is fundamentally opposed to a circuit breaker concept in any form as it represents a tax shift rather than a tax cut. We urge caution in implementing this recommendation into the Governor’s budget proposal and would strongly advocate that these funds be better utilized in the form of further personal income tax cuts that would specifically reduce costs for an overwhelming majority of small businesses.”