Assembly Minority Leader Brian Kolb's letter to the New York State Tax Relief Commission.
THE ASSEMBLY STATE OF NEW YORK ALBANY
Brian M. Kolb Minority Leader
November 15, 2013 Honorable George Pataki & Honorable H. Carl McCall, Co-Chairs Tax Relief Commission c/o Mr. Robert Megna Division of the Budget State Capitol, Room 113 Albany, New York 12224 Dear Governor Pataki and Comptroller McCall: For far too long, hard-working New Yorkers and job-creating businesses have endured the challenges of the nation’s most oppressive tax climate. The onerous costs of living and working in New York State drives families and companies away, and into regions where the road to prosperity is not lined with so many financial hurdles. Establishing the New York State Tax Relief Commission demonstrates that the Governor recognizes the longstanding problem, but it is imperative that this recognition leads to results. While the work of the Commission is important, initiatives that will reduce taxes for New Yorkers already exist in legislative proposals developed by members of the Assembly Republican Conference. I submit for consideration tax-relief measures that can have immediate and lasting benefits to our communities, to our economy and to the future of New York. • • • 18-A Assessment Repeal - Ends the State’s temporary Utility Assessment (18-a) that is placed on utility companies but handed down to customers (A.382-A, Hawley). Permanent Middle Class Tax Cut - Makes permanent the Middle Class Income Tax Cut, which was first enacted in 2011 (A.4575-A, Kolb). “Work NY”: o Eliminates the Corporate Franchise Tax and Personal Income Tax (PIT) for all manufacturers. o Provides a 10 percent PIT credit for small businesses with incomes less than $250,000. o Creates a “Hire-NY” tax credit for businesses for each new job created. Each business will receive an additional tax credit if the job is filled by an unemployed person. o Repeals the ton mileage tax on trucking to alleviate the adverse effect it has on businesses locating fleets or distribution centers in the state (A.4565-A, Kolb). Corporate Franchise Tax Reduction - Decreases the tax burden on medium- and largesize businesses by lowering the corporate franchise tax from 7.1 percent to 6.85 percent. Also, phases out the corporate franchise tax for small businesses over six years (A.4564A, Kolb). “BizBoom” - Establishes a business startup program cutting all application fees for new businesses by 50% for the first year; eliminating business income taxes for the first year and reducing income tax rates for the second and third year (A.4567, Kolb).
MTA Payroll Tax Repeal - Repeals the Metropolitan Commuter Transportation Mobility Tax (A.3285, Rabbitt). Shop NY - Eliminates the state sales tax on items such as gasoline, car seats, bike helmets, and hygiene products to make necessities more affordable for families (A.1574, Kolb). Tax Deduction for Mandated College Supplies - Makes out-of-pocket college expenses for course requirements tax deductible (A.1564, Kolb). Computer and School Supply Sales Tax Free Week - Creates a sales tax-free week for all education-related purchases as well as computer hardware and software (A.3053, Reilich). Retain NY - Provides tax credits for New Yorkers paying college tuition and student loans (A.4891, Kolb). EPIC Extra - Provides income tax deductions for certain seniors struggling with prescription drug costs (A.4246, Raia). Income Tax Credit for Obtaining Flood Insurance - Provides tax credits for those obtaining flood insurance (A.2458, Crouch). Prohibition of Unfunded Mandates - Prohibits unfunded mandates unless they are paid for by the state (A.5001, McLaughlin). 2/3 Vote Requirement for Tax Increase - Require a two-thirds vote of both houses of the state legislature for approval of any increase, extension, imposition or restoration of any tax, fee, assessment, surcharge or any other such levy change, except any bill which results from the passage of a home rule message (A.4774, Palmesano).
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These proposals align with the charge of the New York State Tax Relief Commission, and I hope they will be considered as the Commission prepares its final recommendations to the Governor. The Assembly Republican Conference stands ready to support the Commission on measures that ease the fiscal burdens on taxpayers, facilitate job creation, and stimulate our economy. Sincerely,
Brian M. Kolb Assembly Minority Leader cc: Hon. Andrew Cuomo Dall Forsythe, former New York State Budget Director Jim Wetzler, Director, Deloite Tax LLP Heather Briccetti, New York State Business Council Bill Rudin, CEO and Vice Chairman of Rudin Management Company and Chairman of the Association for a Better New York Jack Quinn, President of Erie Community College Denis M. Hughes, Senior Advisor at Brown & Weinraub, PLLC
REPLY TO: ο Room 933, Legislative Office Building, Albany, New York 12248, (518) 455-3751, Fax (518) 455-3750 ο District Office: 607 W. Washington St Suite #2, Geneva , NY 14456, (518) 781-2030