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Support Tax Cuts
Those of you who attended last week’s Partnership Issues Summit got an earful about how many New York State policies have disproportionately hurt Upstate communities. And whether you attended the Summit or not, you are well aware how New York’s highest-in-the-nation combined state and local tax burden, workers compensation and other costs make it tough for you to thrive here.
That said, kudos to Assemblyman Robin Schimminger who has recently proposed repealing the corporate tax on manufacturers (co-sponsors include other local delegates Assemblywoman DelMonte and Assemblymen Hoyt and Schroeder). Governor Pataki, Senate Majority Leader Joseph Bruno, and other leading Assembly Democrats have also recently proposed some major business-tax cuts.
These plans are aggressive and could cut costs to your business. For that reason, it's vital that you understand these proposals and their benefit to you – and, most importantly, that you join us in urging their approval.
Here is a “plain-talk” explanation for what the proposals could mean for you. Mail or fax a letter on your company letterhead to Albany (contact information listed below) -- tell them you’re a member of the Buffalo Niagara Partnership and that you support bills A10055, S6460-A and A9560-A!
Bill #: A10055
Proposed cut: Repeal of the corporate tax on manufacturers. (Sponsored by Assemblyman Robin Schimminger)
Taxpayers Affected: All manufacturers, even firms that pay business taxes via the personal income tax (PIT).
What It Would Mean: This reform would completely eliminate any state income taxes for manufacturers, letting them invest in technology, equipment, or new jobs to enhance both profitability and competitiveness.
Bill #s: S6460-A, A9560-A (includes the five proposed cuts below)
Proposed cut: Immediate expensing of capital assets.
Taxpayers Affected: Most corporations and banks.
What It Would Mean: Businesses that invest in computers, vehicles, or plant upgrades must "depreciate"—deduct costs of those investments from taxable income over 20 years or more. With this reform, businesses could deduct all these costs immediately. This would improve cash flow by providing immediate tax savings and enhance both the value and attractiveness of such investments.
Proposed cut: Tax rate-cut from 7.5 to 6.75 percent.
Taxpayers Affected: All corporations that pay the general corporate tax rate.
What It Would Mean: These employers would pay 10 percent less in taxes and have more to invest in plants, people, jobs, business development, and profitability.
Proposed cut: Elimination of the tax on subsidiary capital.
Taxpayers Affected: Most corporations, including manufacturers.
What It Would Mean: This requires parents of corporate subsidiaries to pay a tax even if the subsidiary generates no income. Repealing it would encourage firms to site subsidiaries in New York, rather than in competing states.
Proposed cut: Elimination of the alternative minimum taxes (AMT).
Taxpayers Affected: Most corporations, including manufacturers and banks.
What It Would Mean: Many employers get tax incentives, such as the investment tax credit (ITC), but see the AMT reduce or eliminate savings it should have produced. This reform would preserve the full, intended value of such credits.
Proposed cut: Repeal of New York's extra estate tax (which can be as high as 16 percent).
Taxpayers Affected: Family-owned businesses.
What It Would Mean: This would let owners of family and private businesses keep more of the hard-earned fruits of their lifetime labors. It would eliminate a strong incentive these families (and many older New Yorkers) have to retire to other states with low or no estate taxes.
Tell Albany this is the year for action to reduce taxes on businesses. Mail or fax a letter on your company letterhead to the officials below; tell them you’re a member of the Buffalo Niagara Partnership and that you support bills A10055, S6460A and A9560A!
Governor George Pataki - State Capitol – Albany, NY 12224 Fax 518/474-0783
Senate Majority Leader Joseph Bruno - Room 909, LOB – Albany, NY 12247 Fax 518/455-2448
Assembly Speaker Sheldon Silver - Room 932, LOB – Albany, NY 12248 Fax 518/455-5459
Senate Minority Leader David Paterson - Room 907, LOB – Albany, NY 12247 Fax 518/455-2816
Assembly Minority Leader James Tedisco - Room 932, LOB – Albany, NY 12248 Fax 518/455-5558
WNY State Delegation:
Senator William Stachowski – Room 604, LOB – Albany, NY 12247 Fax 518/426-6851
Senator Dale Volker – Room 427, LOB – Albany, NY 12247 Fax 518/426-6949
Senator Mary Lou Rath – Room 707, LOB – Albany, NY 12247 Fax 518/426-6963
Senator George Maziarz – Room 915, LOB – Albany, NY 12247 Fax 518/426-6987
Assemblywoman Francine Delmont - Room 428, LOB – Albany, NY 12248 Fax 518/455-5694
Assemblyman Robin Schimminger - Room 847, LOB – Albany, NY 12248 Fax 518/455-5724
Assemblywoman Crystal Peoples - Room 325, LOB – Albany, NY 12248 Fax 518/455-5741
Assemblywoman Sandra Lee Wirth - Room 546, LOB – Albany, NY 12248 Fax 518/455-5257
Assembly Majority Leader Paul Tokasz - Room 926, LOB – Albany, NY 12248 Fax 518/455-3962
Assemblyman Sam Hoyt - Room 627, LOB – Albany, NY 12248 Fax 518/852-2799
Assemblyman Mark Schroeder - Room 919, LOB – Albany, NY 12248 Fax 518/455-5238
Assemblyman Jack Quinn III - Room 543, LOB – Albany, NY 12248 Fax 518/455-5560
Assemblyman Jim Hayes - Room 426, LOB – Albany, NY 12248 Fax 518/455-5023
Thank you for your assistance – and interest – as we advocate for passage of these important measures (and stay tuned – we’ll be rolling out an important advocacy campaign, called “Unshackle Upstate,” soon…and will once again call on you for your support).
Sincerely,
Andrew J. Rudnick
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Support Tax Cuts
