|
|
 |
|
|
|
Senator Bruno seeks to eliminate the sales tax on gasoline and diesel fuel, and allow localities the option of also doing so to help ease the impact of higher prices on consumers� wallets. |
Bruno: Democrats Stalling on Tax Cuts, Critical Spending Threatens State�s Economy
Wednesday, May 9, 2001
State Senate Majority Leader Joseph L. Bruno today convened a second meeting of the Joint Legislative Budget General Conference Committee -- once again minus Democrat leaders from the Assembly and Senate, who failed to show -- in an effort to jump-start talks over the delayed state budget and highlight the need for tax cuts sufficient to continue New York�s economic resurgence.
Senator Bruno pointed to soaring gas prices -- which have jumped an average 23 cents, or 15 percent, statewide since a month ago, to their highest levels ever -- as the latest evidence of the need for action on tax cuts that the Senate Majority believe must be included in the budget plan.
The Senate Majority seeks to eliminate the sales tax on gasoline and diesel fuel, and allow localities the option of also doing so, to help ease the impact of higher prices on consumers� wallets. The gas tax cut plan is included among the $2.2 billion in tax cuts sought by the Senate Majority that are expected to win approval today from the Senate Finance Committee.
"The rising cost of gasoline threatens real harm to our economy by making it more expensive to commute and travel, as well as deliver goods and services to families and businesses in communities throughout our state," said Senator Bruno. "We should act now, by beginning the process of negotiating a state budget that includes tax relief for drivers and other common sense proposals that will protect the advances we have made in revitalizing New York�s economy and improve our ability to provide jobs and opportunity for our citizens."
According to the Automobile Club of New York, average prices for regular grade unleaded gasoline have climbed 23 cents in one month to $1.752 per gallon, an all-time high.
The Senate Majority proposal, contained both in the overall, $2.2 billion tax cut plan and a separate, stand-alone bill, would immediately shave 4 percent off that price, and provide additional savings in localities that choose also to eliminate their local sales tax.
The Senate Majority�s tax cut plan also targets a host of other initiatives aimed at stimulating job and economic growth, as well as helping families meet health care and other needs.
"These Senate Majority proposals are carefully crafted to reduce the state tax burden on families and businesses, allow families to meet basic needs like health care for their children and elderly parents, and help lessen the impact of rising heat and gas prices for New York families," said Senator Bruno. "At a time of growing economic uncertainty on the national front, it is more important than ever that New York invest in these types of tax cuts to prolong our own economic resurgence and allow us to weather potentially difficult economic times ahead."
In addition to the elimination of state sales tax on gas and diesel fuel, other highlights of the Senate Majority tax-cut plan include reductions of energy and property taxes, tax credits to help families care for children and elderly loved ones, an innovative tax credit to encourage small businesses to provide health insurance for their employees, the expansion of the successful Empire Zone program, and programs that would reduce sales taxes on home computers and "hands-free" cell phone accessories.
"Once again, the Senate Majority continues to be the leader in cutting taxes for New York families and businesses," said Senate Finance Committee Chairman Ronald B. Stafford (R-C, Plattsburgh). "As we face the very real possibility of a nationwide economic downturn, it is important that we continue to provide the incentives necessary to keep and attract businesses to New York State, and provide needed relief for New York families."
Lowering the cost of energy
To help ease the impact of rising prices at the gas pump, the Senate Majority proposes to eliminate the 4 percent state sales tax on gasoline and diesel. The Senate plan would save consumers 8 cents a gallon if, as expected, gas prices reach $2 a gallon this summer. It is estimated that New York motorists would save a total of $400 million under this plan. Savings could increase even further if local and county governments decide to abolish their sales-taxes on fuel prices.
In addition, the Senate Budget Resolution includes $485 million in other tax saving proposals designed to stem rising energy costs:
* elimination of state sales tax on home energy conservation products like insulation, caulking, thermal windows, and furnaces;
* repeal of Gross Receipts Tax on home energy;
* creation of Home Energy Assistance Tax Credit to help low-income New Yorkers pay rising energy bills.
Bringing more jobs to the Empire State
The Senate Budget Resolution also includes tax credits to help attract industry, encourage economic development, and create more jobs throughout the state:
* the Gen*NY*sis program, designed to promote the growth of the biotechnology industry in New York, would provide $45 million in targeted tax relief for biotech employers;
* the Senate proposes to expand the popular Empire Zone program by creating 14 new zones across the state and expanding the existing 52 zones;
* to help more businesses invest in new equipment and technological advances, the Senate has proposed an expansion of the Investment Tax Credit to include leased equipment, saving businesses $55 million a year;
* the gradual elimination of the Alternative Minimum Tax would save businesses $50 million when fully implemented, thus encouraging more investment in New York State;
* the Senate Majority�s proposal to repeal the petroleum business tax on kero-jet fuel would save airlines $10 million and help reduce airfares for New York travelers.
Reducing taxes for New York�s small businesses
The Senate has also addressed the mounting costs of health insurance premiums for small businesses across the state with the $235 million health care tax credit. Under this plan, eligible small businesses would be allowed a tax credit of 10 percent the cost of health insurance premiums;
* the Vendor Credit would compensate small business for collecting sales taxes by allowing them to retain 7 percent of the sales taxes they collect, saving them a total of $25 million;
* to encourage the growth of the biotechnology industry in New York, the Senate proposes $20 million in tax credits to help improve the cash flow for smaller, fledgling biotech firms;
* the High Technology Job Retraining Credit would save small businesses in the burgeoning high-tech industry $10 million a year.
Tax relief for New York Farmers
To help farmers maintain existing land and obtain additional farmland, the Senate supports the Governor�s Farmland Improvement Credits which would save New York farmers $8 million annually;
* The Senate also supports the Governor�s Farmer�s School Property Tax Relief which provides $5 million in tax cuts to give landowners needed incentives to continue to rent out agricultural property;
* The 15 percent refundable health insurance credit would save farmers $15 million a year and help them provide their families and employees with affordable health care;
* The Senate proposal to remove the alternative minimum tax limitations for farms would save farmers $2 million annually;
* the total value of the Senate Majority�s farm tax cut proposal is $40 million, including the above.
Helping New York families care for loved ones
The Senate has also proposed tax credits that would help working New York families care for their loved ones, both old and young:
* the $50 million Elder Care Tax Credit would provide a tax credit of 20 percent of the expenses incurred for the in-home care of an elderly relative;
* the Child Care Credit Enhancement would give even more New Yorkers a tax credit for child care expenses, saving New York families $25 million annually;
* in addition, the Senate has proposed a $20 million Adoption Credit which would not only offset the cost of adopting a child in New York, but give more New Yorkers an added financial incentive to do so.
Reducing property taxes
The Senate also supports the Governor�s Co-STAR proposal which would provide county tax relief for eligible farmers and seniors. The plan, modeled after the successful STAR program, would save New Yorkers an additional $230 million in property taxes.
Bringing more computers into New York homes
One of the more innovative Senate Majority proposals is designed to increase the number of New York homes with home computers. Presently, New York ranks on the bottom third of this list nationwide. Under the Senate�s plan, New Yorkers would enjoy a one-week exemption of state sales tax on the purchase of a home computer. It is estimated that Sales Tax-Free PC Week could save New Yorkers $20 million and bring up to a quarter-million new computers into New York homes.
Safe cell-phone use
To encourage safe use of cell phones, the Senate also has proposed a sales tax exemption on the purchase of "hands free" cell phone accessories to promote safer use of cell phones on New York roads and highways.
A complete list and description of the Senate Majority�s 2001 tax cut plan is attached.
[BIOGRAPHY] [DISTRICT MAP] [PHOTO GALLERY] [LEGISLATION] [CONSTITUENT SERVICES] [YOUR OPINION COUNTS] [GUESTBOOK] [PRIVACY POLICY] [SENATE INSIDER] [CONTACT INFO] [HOME/NEWS]