Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

N.Y. TAX REFORM AND FAIRNESS COMMISSION PRESENTS FINAL REPORT


(The following press release from the New York State Governor's Office was received by e-mail and was reformatted. The sender verified the statement.)

State of New York | Executive Chamber Andrew M. Cuomo | Governor For Immediate Release: November 14, 2013

NEW YORK STATE TAX REFORM AND FAIRNESS COMMISSION PRESENTS GOVERNOR CUOMO

WITH FINAL REPORT

Recommendations seek to make the tax code simpler, fairer, help reduce

burdens for families and businesses, and create economic growth

Today, Governor Andrew M. Cuomo was presented with the final report of the New York State Tax Reform and Fairness Commission. The Commission report outlines revenue neutral policy options to modernize the current tax system with the goals of increasing its simplicity, fairness, economic competitiveness and affordability. The report can be viewed here: http://www.governor.ny.gov/assets/documents/greenislandandreportandappendicies.p df .

“I want to thank Co-Chairs H. Carl McCall and Peter J. Solomon, the members of the Commission, and all the people who provided input to this process,” said Governor Cuomo. “Since being elected Governor, my administration has focused on reversing New York’s negative tax reputation, further improving our business climate and easing the burden on everyday taxpayers. Today’s report represents another step in that direction as we seek to simplify New York’s antiquated and unnecessarily onerous tax code, and to ease the tax burden on families and businesses statewide.”?

The New York State Tax Reform and Fairness Commission conducted a comprehensive and objective review of the State's taxation policy, considering ways to eliminate tax loopholes, promote administrative efficiency and enhance tax collection and enforcement.

The report outlines five revenue-neutral reform packages that will serve as options for consideration.

· Modernize the sales tax while funding low- and middle-income tax

relief and overall real property tax relief. The Commission asserts

that there are better and more progressive ways to provide tax relief

to low and moderate income New Yorkers through reforms of the current

sales tax exemption structure.

· Modify the estate tax to relieve the burden on middle class families

and small businesses by eliminating the tax on 73% of New Yorkers who

would be required to pay it. The Commission asserts this tax is

wrongly targeted at middle class taxpayers.

· Reform the State's corporate and bank franchise taxes for the first

time in decades to better reflect how businesses operate in a 21st

century economy. The Commission asserts that the State’s basic

corporate franchise tax structure is badly outdated, unduly complex

and vulnerable to aggressive tax avoidance techniques. Similarly

situated taxpayers are treated differently, and in some instances the

tax creates disincentives to increasing a corporation’s activities in

New York. Business tax credits should be annually evaluated in a

transparent way to ascertain their effectiveness.

· Review best practices of property tax administration in order to make

the system fairer and more equitable for local governments,

businesses and homeowners. New York’s system of property tax

administration has been ranked among the lowest in the 50 states. The

Commission asserts that current property tax administration lacks

fairness and transparency, and represents a compliance burden for

businesses.

· Simplify the administration of taxes to ease compliance for

businesses and individuals in New York. The Commission asserts that

many aspects of the tax code are unnecessarily burdensome,

antiquated, or ripe for reform. For example, temporary vendors (e.g.

Christmas tree sellers) must file sales tax returns on the same

quarterly schedule as other retailers. These vendors could be allowed

to file their sales tax returns immediately after their last sale.

Nuisance taxes could also be repealed, such as an existing tax on

limited categories of income that is currently collected from only

200 taxpayers, generating just $200,000, annually. Other potential

reforms would result in eliminating hundreds of thousands of people

from the tax rolls.

Co-Chair H. Carl McCall said, “I’d like to thank the Governor for asking me to serve on this commission, and for the significant progress he has already made in making New York more competitive. New York’s finances have greatly improved in recent years, but our long-term economic prosperity relies on reform of the tax code and tax relief.”?

Co-Chair Peter J. Solomon said, “Modernizing our archaic taxes to make the system more fair and equitable will be an enormous boost to New York. We hope these options will further improve our business climate and help encourage job creation.”?

James Parrott, Deputy Director and Chief Economist of the Fiscal Policy Institute, said, "The Commission's main sales tax proposal has the virtue of being progressive in linking the elimination of the state clothing sales tax exemption to an offsetting income tax credit for low- and moderate-income households, and much-needed income-based property tax relief."

James W. Wetzler, Former Commissioner of the New York State Department of Taxation and Finance, said, "Tax reform can make compliance much easier for taxpayers, make the system fairer, and spur economic growth in New York."

Dall W. Forsythe, Adjunct Professor of Finance at NYU’s Wagner School and former New York State Budget Director said, “The current system violates the basic tax policy principles of fairness and efficiency. New York is long overdue in seeking out ways to streamline and standardize the tax code and I’m very encouraged by the Commission’s comprehensive and objective review.”

The report will be shared with the New York State Tax Relief Commission, co-Chaired by Mr. McCall and Governor George Pataki. The Tax Relief Commission is working to help identify ways to reduce the State’s property and business taxes, and will provide recommendations for consideration in the Governor’s 2014 State of the State message.

Since taking office in 2011, Governor Andrew Cuomo has taken significant steps to improve New York’s business climate and to make taxes more affordable for average New Yorkers. Significant reforms were undertaken in the State’s Personal Income Tax to increase its overall progressivity while assuring that all New Yorkers pay a lower income tax rate than when the Governor took office. Governor Cuomo also took major steps to reduce the high burden of the Real Property Tax by enacting the State’s first ever property tax cap in 2011. The cap limits increases in school and local real property taxes to two percent a year, or the rate of inflation, whichever is less, with narrow limited exemptions.

New York State Tax Reform and Fairness Commission Co-Chairs

H. Carl McCall, State University of New York Board of Trustees Chairman Peter J. Solomon, Peter J. Solomon Company, LP, Founder and Chairman

New York State Tax Reform and Fairness Commission Members

J. Pat Barrett, Olympic Regional Development Authority Chairman Dall W. Forsythe, New York State Division of the Budget, Former Director David M. Frankel, New York City Finance Department, Former Commissioner Thomas H. Mattox, New York State Department of Taxation and Finance, Commissioner James Parrott, Fiscal Policy Institute, Deputy Director and Chief Economist Alan D. Schwartz, Guggenheim Partners, Executive Chairman James W. Wetzler, New York State Department of Taxation and Finance, Former Commissioner Robert G. Wilmers, M&T Bank, Chairman and CEO Deborah C. Wright, Carver Bancorp, Inc. /Carver Federal Savings Bank, Chairman and CEO

Additional news available at www.governor.ny.gov

New York State | Executive Chamber | press.office@exec.ny.gov |

518.474.8418

(kgt)NY

Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement