The New York State Conference of Blue Cross and Blue Shield Plans (NYSCOP) released an infographic highlighting the taxes and fees driving up the cost of health insurance titled, “A Taxing Look at Hidden Health Insurance Taxes.”
According to recent NYSCOP estimates, New Yorkers with private health coverage paid approximately $4.8 billion in state health insurance taxes in 2013. With employers paying most of the private health insurance premiums, the state tax on private coverage is nothing more than a “hidden” business tax. Among all business taxes levied by the state, when totaled, the taxes imposed on the privately insured would rank as New York’s single highest business tax.
Adding to the state tax burden are a number of new federal health insurance taxes. Beginning this year, as a result of three new taxes included in the federal Affordable Care Act, New York’s businesses and families will be required to pay an additional $1.7 billion, bringing the total health insurance tax bill to more than $6.5 billion. In 2015, the federal tax burden will increase by another $100 million.
The three federal taxes and their estimated costs are:
In addition, beginning in 2014 a risk adjustment user fee based on the number of enrollees will be levied. The annual cost of this fee is yet to be determined. A federal excise tax (Cadillac tax) for high-cost employer-sponsored health coverage begins in 2018.
New York State’s small business owners already have 100 million reasons to be worried about next year’s increase in health insurance taxes. Now is not the time to add to their burden.
To view NYSCOP’s infographic, please click on the following link: http://bit.ly/1dU1lfz
Yesterday, the Time Warner Cable News show Capital Tonight interviewed Ken Pokalsky, The Business Council’s vice president of government affairs, and Robert Cline, of Ernst and Young, about the recently release Public Policy Study analyzing the impact of Governor Cuomo’s proposed tax changes.
The report looks at the business tax cuts proposed by the Governor and provides economic modeling that shows dropping the corporate franchise tax rate, reducing property tax credits by 20 percent, and merging articles 9 and 32 would produce 14,000 more jobs for New York by 2019 than it would see if there is no change in the law.
Pokalsky told host Nick Reisman that broad-based reforms coupled with reducing operating costs in highly productive sectors would lead to more jobs and better economy. Cline reiterated that it would make New York a more attractive place to do business.
Watch the full interview on the Time Warner Cable News website. You will need a Time Warner Cable ID and password to access the video.
The full report is available on the Public Policy Institute of New York State, Inc. (PPI) website at www.ppinys.org or The Business Council of New York State, Inc. website at www.bcnys.org.
PPI is a non-partisan, tax-exempt 501 (c) 3 organization. It does not accept public funds and depends on the support of corporations, foundations and the public.
Business tax reforms and lower business tax burdens, proposed by Governor Cuomo, will produce significant job, income and economic benefits for the state, according to a report issued today by The Public Policy Institute of New York State, Inc. (PPI), the research and education affiliate of The Business Council of New York State, Inc. The report, “Analysis of Economic Impacts of New York Corporate Income Tax Reform,” prepared for PPI by Robert Cline, national director of state and local tax policy economics for Ernst and Young, is based on the corporate franchise tax reform framework set forth by Governor Cuomo’s two tax commissions.
The analysis, based on the Regional Economic Models, Inc. (or REMI) model of the New York State economy, found that restructuring the tax code and lowering the basic tax rate would produce more than 14,000 new jobs by 2019, and almost 18,000 new jobs by 2024. It also shows in-state personal income will increase by $1.3 billion by 2019, and $2.1 billion by 2024; and incentivize between $500 and $800 million in new private sector capital investments.
“The Business Council strongly supports the tax reform package laid out by Governor Cuomo,” said Heather C. Briccetti, Esq., president and CEO of The Business Council of New York State, Inc. who also served on the Governor’s Tax Relief Commission. “Our report today illustrates the size and scope of those economic impacts that will continue to move New York in the right direction by creating jobs and growing the economy.”
The full report is available on the Public Policy Institute of New York State, Inc. (PPI) website at ppinys.org or The Business Council of New York State, Inc. website at bcnys.org.
The Post Standard spoke to both Heather C. Briccetti, Esq., president and CEO of the Business Council of New York State and Randy Wolken, president of the Manufacturers Alliance of New York State yesterday about whether Governor Cuomo could succeed in changing New York’s high-tax reputation.
Briccetti told the newspaper that the broadness of the business tax cuts proposed by Cuomo are what make them so different from previous attempts by the state to change its high-tax reputation.
Wolken said the state’s reputation will change when companies see its business environment heading in the right direction.
The article notes New York’s long-held reputation as one of the highest taxed states in the nation and highlighted that although that won’t change overnight, business groups feel the tax-cut proposals are a good start.
Read Rick Moriarty’s full article on the Post Standard’s website.
New York’s business community is reacting favorably to Gov. Andrew Cuomo’s endorsement of his tax proposal to cut $2 billion in business and property taxes over the next few years.
Cuomo approved $1 billion in business tax cuts and $1 billion in property tax cuts in New York. The plan will be included in the 2014-15 state budget.
The plan includes cutting the corporate income tax rate from 7.1 percent to 6.5 percent. For 4,300 upstate manufacturers, the corporate tax rate will be eliminated completely.
In an interview on Capital Tonight on Time Warner Cable News, Heather C. Briccetti, Esq., president and CEO of The Business Council said, “The tax relief for manufacturing really can’t be overstated.”
To read The Business Council’s complete statement, please click here.
New York Governor Andrew Cuomo is expected to deliver his annual State of the State address this week, on Wednesday. Multiple news outlets are reporting that it will focus on one of the Business Council’s major priorities ─ taxes ─ and other issues such as the possible legalization of medical marijuana.
Gannett News Service reports that taxes, and improving the upstate economy through tourism and high-tech development, are expected to be themes of his speech and that the Governor will embrace recommendations last month’s tax commission report. Business Council President and CEO Heather C. Briccetti, Esq. was a member of the tax commission providing the Governor with recommendations. The recommendations include freezing property taxes for two years and calls on local governments and schools to stay within a property tax levy cap.
Preceding the State of the State address on Wednesday, January 8, the Governor held a press conference today on the tax committee recommendations. At the press conference, Business Council President and CEO Briccetti encouraged adoption of the tax plan and stressed that tax relief for manufacturers is such an important step in the right direction for upstate. The Governor will also hold a press event with Vice President Joe Biden in the Capital Region on Tuesday that will highlight federal disaster aid to rebuild New York’s infrastructure damaged during Superstorm Sandy.
A Wall Street Journal article reports that the delay in New York Gov. Cuomo’s tax commission report comes over the debate of former Gov. George Pataki’s plan to slash the personal-income tax on the highest earners. It also says the report could hold more than $1.4 billion in property tax or rent relief and $400 million in “non-estate tax pro-growth tax cuts.”
Although the report was expected to be release last week, it may be released this week. Pataki said Thursday, “We continue to meet and make progress.”
The tax commission, which includes Heather C. Briccetti, Esq., president and CEO of The Business Council of New York State, was charged by the Governor with making recommendations to cut property and business taxes. The Commission is led by Pataki and former state Comptroller Carl McCall.
The Business Council’s Vice President of Government Affairs Ken Pokalsky is quoted in an article that appeared in Bloomberg News today outlining the growing support for revisions to New York state’s tax code. It also outlines the Senate tax plan that was recently released and initiatives proposed by Governor Cuomo’s New York State Tax Reform and Fairness Commission.
The Senate report, released last month, calls for an estimated $11 billion in tax cuts over four years. Pokalsky said, “Tax reform momentum is building for next year” and added that many of the measures proposed in the state Senate report were priorities for The Business Council.
A second Cuomo panel, the New York State Tax Relief Commission, which includes The Business Council’s President and CEO Heather C. Briccetti, Esq., will offer tax cut ideas in a plan to be released in the near future.
Read the full article on the Bloomberg News website.
The Wall Street Journal is reporting that former New York Gov. George Pataki, co-chairman of the New York State Tax Relief Commission, is proposing a plan that would reduce the state’s personal-income taxes (PIT). The paper quotes an anonymous source as saying, “He will push to bring the PIT down faster than the current plan.”
The source also said he would seek to make some middle-class tax changes implemented in December 2011 permanent.
The tax commission, which includes Heather C. Briccetti, Esq., president and CEO of The Business Council of New York State, was charged by the Governor with making recommendations to cut property and business taxes. The Commission is led former Governor Pataki and former state Comptroller Carl McCall.
Read more on the Wall Street Journal’s website.
The Wall Street Journal is reporting that small businesses may be impacted by an annual ‘fee’ imposed on health-insurance companies by the Affordable Care Act. It is expected the fee will total as much as $8 billion next year and as much as $14.3 billion by 2018.
The Congressional Budget Office and industry experts say the expense will be passed on to small businesses and consumers who buy their own policies.
The new health-law tax is projected to raise premiums for small businesses by an average of 1.9% to 2.3% in 2014.
Read more on the Wall Street Journal website.