New York (STONY1) Republicans, who control the Senate, will include in their budget proposal a 20 percent tax cut for small businesses as part of a plan to create jobs.
The Senate is set to vote on its budget proposal next week, Dean Skelos, the majority leader, said in a statement today. Under the plan, the corporate tax rate for small businesses would be cut to 5.5 percent from 6.85 percent, a $65 million reduction for almost 200,000 entities, according to the statement, which didn’t specify the size of businesses that would be affected.
In December, lawmakers approved a bill backed by Governor Andrew Cuomo, a Democrat, that cut income-tax rates for the middle class and raised them for joint filers earning $2 million or more. Employers in the 12 counties surrounding New York City saw a reduction in the portion of their payroll taxes used to support the Metropolitan Transportation Authority.
“Last year, Senate Republicans partnered with Governor Cuomo to begin revitalizing the state’s economy by reducing spending and cutting taxes for businesses and middle-class New Yorkers,” Skelos said. The new plan will “build on that progress by cutting taxes even more, ensuring fiscal responsibility, protecting taxpayers and helping businesses create more jobs.”
Assembly Speaker Sheldon Silver, a Democrat, has proposed a bill that would raise the minimum wage to $8.50 an hour from $7.25 and tie future increases to the inflation rate. Senate Republicans have said the measure would harm small businesses and lead to job cuts.
The Republican plan announced today would also give a 10 percent tax credit to about 800,000 businesses that have less than $250,000 in business income, at least one employee and file under the personal income tax. The credit would save businesses $120 million, it said.
Another piece of the plan would give businesses a tax credit of as much as $5,000 for each new job they create, up to $8,000 if the job goes to someone collecting unemployment insurance, or as much as $10,000 if the business hires a returning veteran.
Cuomo has included his own jobs plan in his $132.5 billion budget centered on a $15 billion infrastructure fund that would speed up repairs on 2,000 miles (3,218 kilometers) of roads, 90 municipal water systems and 100 bridges. If approved on time, the budget would go into effect April 1.
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