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Industry News

New York Governor proposes business-friendly tax cuts

Governor Andrew Cuomo wants to lower business taxes.

Governor Andrew Cuomo wants to lower business taxes.

Governor Andrew Cuomo is serious about attracting and developing businesses in his state, and he wants to put money where his mouth is. 

He proposed new business tax cuts, part of a $2 billion package he outlined earlier this month. Not only does he want to slash the rate for corporations from 7.1 percent to 6.5 percent, he also wants to create other incentives, such as a refundable property tax credit for manufacturers and eliminating the corporate tax for manufacturers in the upper part of the state.

New York has consistently ranked in the bottom ten of retaining these sorts of jobs, and these new measures hope to reverse that trend. State and local taxes represent around 3 to 4 percent of a corporation's expenditures, a figure which might not immediately jump off the page, but represents important income for a new business attempting to succeed in a difficult market.

The governor was effusive about the potential effects of this proposal.

"There's nothing like it in this country. It makes New York the least expensive place in the United States to locate a business," Cuomo said in a speech.

Another potential method for stimulating further development in New York is a greater emphasis on informing potential business owners. Educating people on questions like "what is a LLC?" and "how do I get a federal id?" will give them a basis for understanding why these new tax incentives are so valuable. In turn, this increased activity will create new jobs, stimulate growth and help jump start an economy that is still trying to shake off the lingering effects of a recession.