“The massive increase in the Personal Income Tax (PIT) proposed in Senate Bill-2021 would devastate New York’s economy and undermine our chances for recovery from this deep recession,” said Kenneth Adams, president & CEO of The Business Council of New York State, Inc.

Editorial opinion builds against the imposition of an MTA “payroll tax” Long Island Newsday says “Slow down this train“.

“A state commission’s rescue plan for the Metropolitan Transportation Authority is blatantly unfair, comes down particularly hard on local businesses and doesn’t hold the authority nearly accountable for its spending practices.” say the Poughkeepsie Journal in an editorial today.
To read the editorial click here.

Let us know what you think about the MTA tax proposal.

This past weekend, more than 40,000 customers signed postcards at tables set up inside Wegmans stores across New York State. The postcards ask the state legislature to approve a measure legalizing wine sales at grocery and convenience stores.

Governor David Paterson says it could generate more than $100 million in new revenue. Wegmans thinks that number could actually be around $159 million, including licensing and other fees that stores would have to pay.

Wegmans has launched an online petition supporting the bill. If you would like to participate, the link is below:

Wegmans Petition Supporting Wine Sales in Grocery Stores

“The advantages of New York selling wine in grocery stores, particularly in these economically off-the-cliff times, are so obvious and overwhelming as to be self-evident. New York consumers would instantly encounter vastly more choice and convenience in terms of availability, which in turn translates into more wine sales, happier drinkers, more state sales tax and far more outlets for the state wine industry.” said Times Union Columnist Fred LeBrun in Suday’s Times Union to read the entire column vist:

http://timesunion.com/AspStories/story.asp?storyID=770326

Along with The Business Council, grocers and wineries across New York, this change is strongly supported by the New York State Grape Growers Association, Food Industry Alliance of New York State, New York State Association of Convenience Stores, Long Island Association, New York State Farm Bureau, Greater Syracuse Chamber of Commerce, Greater Binghamton Chamber of Commerce and the Rochester Community Coalition.

The Business Council is launching an advocacy effort directed at fighting proposals to retroactively impose eligibility requirements on Empire Zone employers. Under the Executive Budget proposal, a substantial number of Empire Zone companies could be removed from the program, including those that have made major capital investments and increased employment within the zones.

Not only will this proposal adversely affect current zone participants, it will damage future state development efforts by imposing new requirements on, and taking away, already-awarded development incentives. To participate, click here.

The NYS Department of Labor has issued “emergency” regulations for the state’s new plant closing and mass layoff law, the Workforce Adjustment and Retraining Notification act, or “WARN.” These emergency rules were effective January 30, 2009. The emergency adoption, and proposal for permanent adoption, are scheduled to be published in the February 18, 2009 State Register. Both the rule summary and the text of the emergency rule are available for your review.

The Business Council is reviewing this rulemaking and will be submitting comments during the formal public comment period.

Senator Eric Schneiderman, along with seventeen co-sponsors, have introduced legislation to raise $6.2 billion in additional personal income tax revenues (S.2021). This proposal, pushed by the “Working Families Party,” would impose higher rates on taxpayers income above $250,000. The new rates are 8.25% on income between $250,000 and $500,000, 8.97% on income between $500,000 and $1 million, and 10.3% on income above $1 million. The state’s current top rate is 6.85% on incomes over $40,000. This proposal would give New York the second highest marginal PIT rate of any state (only Montana has a higher top rate of 11%) and would push New York’s PIT rates well above most other state (only one other state, California, has a top rate greater than 9%.)

While Assembly Speaker Sheldon Silver has supported the concept of increased PIT rates, to date, the Assembly Majority has not endorsed any specific rates or brackets.

An comparison of current and recent PIT proposals—including S.2021, PIT legislation passed by the Assembly in 2008, and the most recent PIT surcharges adopted in 2003— as well as the text of S.2021, is available on our Tax Committee page here.

Governor David Paterson’s budget proposal to place new criteria on existing Empire Zone companies will do immediate damage to the state’s economy and damage long-term economic development efforts. The Business Council of New York State, The New York State Economic Development Council and The Independent Power Producers of New York all oppose the changes.

Read more »

In a joint op-ed in The Albany Times-Union, Kenneth Adams, president & CEO of the Business Council and Carol Kellerman, president of Citizen’s Budget Commission make the case that New York state and local government must restrain employee compensation costs.