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Governor pitches $2B in tax cuts
Albany, N.Y. -- Gov.Andrew Cuomo is looking to spend a projected $2 billion budget surplus on the taxpayers. Since taking office the Governor has turned a $10 billion budget deficit into a surplus and in the upcoming budget year hes calling for tax cuts that would impact nearly every New Yorker in some way.
The biggest impact might be felt on businesses, specifically manufacturers, in Upstate. The tax cut plan unveiled Monday morning in Albany calls for the lowest corporate franchise tax rate since 1968; 6.5% down from the current 7.1% rate. Businesses also can expect a property tax rebate equal to 20% of the companys property tax bill.
Governor Cuomo is also proposing that the corporate income tax rate for manufacturers in Upstate New York be eliminated completely.
"We want to reduce the corporate income tax in Upstate New York for manufacturers to zero, Gov. Cuomo said Monday. Just say our tax rate for manufacturing companies in Upstate New York is zero because you can't beat zero and everybody knows it.
For companies like Cerion Enterprises such proposals could become very real factors that influence decisions made in the future.
"Cerion Enterprises is a chemical research and manufacturing company and those kinds manufacturing companies are the kind of companies that spur growth and economic development so Governor Cuomo's plan to reduce the tax burden and make the cost of business lower was a welcome addition to the things that make business better here in Rochester, said Douglas Singer the Vice President of Manufacturing at Cerion Enterprises.
Last summer Cerion expanded and relocated within the Eastman Business Park to meet the needs of their growing business. The tax cuts Governor Cuomo proposed Monday could impact decisions when the company is ready to move and expand again.
"Cerion does business all around the country and all around the world and Rochester and Upstate New York are competing with industrial complexes in the Atlantic Coast and the Gulf Coast region and we could choose to go to any of those places, Singer explained. So as we continue to expand anything the Governor can do and New York State can do to keep us here, such as these tax breaks, will help us maintain our business here in New York and contribute to the growth here versus moving to another area.
The Governor plans to include these proposed tax cuts in his State of the State address on Wednesday in Albany. Other proposed tax cuts impact the estate tax, renters, and homeowners.
You can read a summary of the proposed tax plan in this press release provided by the Governors Press Office.