February 21 , 2006
by Dylan Skriloff
Senate Majority Leader Joe Bruno and the Republican Majority in the Senate have proposed a major tax reduction program for small businesses, which includes the repeal of the corporate income tax for all manufacturers.
The New York State Economic Development Council applauded the decision to repeal the manufacturing tax, which they had urged the Senator to consider. The RBA also supports the measure and will be signing a memo in support.
According to NYSEDC, in just the last 12 months New York has lost 16,000 manufacturing jobs, or 2.8% of its total. This represents 40% of the nation’s loss in manufacturing employment during that same time. New York has lost 52% of its manufacturing jobs in the last three and a half decades, more than any other state. Brian McMahon of NYSEDC noted that most tax incentive programs in the state are aimed at attracting new businesses while currently existing businesses are left with a high state and local tax burden.
"What better way to commit to manufacturing in New York than to make their operations tax-exempt for corporate income tax purposes," McMahon said.
NYSEDC believes the proposal, if passed by the legislature, will also help recruit new manufacturers to New York State, especially technology companies. They also say it will be a powerful message to businesses worldwide that New York is serious about earning their investments.
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In all, Senate proposes $3.5 billion in tax relief for small businesses
The Senate's small business assistance plan is "well-structured, well-targeted, badly needed, and much appreciated by the business community and New York's taxpayers," Business Council president Daniel B. Walsh said.
"Lets hope the full legislature acts on these big ideas this session," RBA CEO and President Al Samuels added.
The Senate majority proposed a rebate check for school taxes that would bring a statewide value of $400 million in property tax relief, an income tax credit equal to 43 percent of premiums paid by small businesses for health insurance bringing $1.7 billion annually after a ten-year phase in period and also proposed the elimination of the supplemental income tax on small businesses, saving business owners $60 million annually.
To compensate for high energy costs the Senate majority has proposed a $350 million refundable tax credit. The proposal also aims to eliminate or streamline red tape for small businesses and to hold legislative forums around the state to review regulatory burdens on small businesses. |
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