Dear Editor,
Gleaned from a news release from the Gannett news bureau in Albany, Joseph Spector made an excellent case of why we need to change government from the top down in New York State.
New York ranks at number one at being the highest taxed state. Nationally, New Yorkers pay on average 39 percent more on earned income than those in the other 49. New York taxpayers are number one of the top three states which pay the highest taxes and have the distinction of spending the most revenue on combination welfare tax break subsidies and public assistance. Visit http://247wallst.com/special-report/2014/04/02/states-with-the-highest-and-lowest-taxes/3/.
New York has 71,759 tax-subsidy deals worth $21 billion on its books, five times more than any other state and is the leader in corporate welfare. As a result, New York is one of the highest-taxed states in the nation, so political leaders have long relied on tax breaks to keep businesses and lure new ones. It gives out about $7 billion a year in tax breaks. One of the largest being more than $1 billion to help clean up old industrial sites with NYS Power Authority. A 30 year, $5.6 billion tax break to Alcoa, making the deal the 2nd biggest subsidy the state has awarded to a Private company.
Other significant New York tax subsidies ranking in the top twenty of state subsidies in the nation have been $1.2 billion GlobalFoundries, for its semiconductor plant in Saratoga County, $660 million to IBM for its East Fishkill, Dutchess County, plant which appears to be closing anyway and selling the plant to GlobalFoundries with transferable credits.
Gov. Cuomo in January started one of the largest tax-break programs in state history; Start-Up NY which offers tax-free zones for 10 years to businesses that locate near college campuses. About two dozen small businesses have already signed up, a few which are not new to New York but are relocating their employees and operations into the zones to reap the tax advantages.
Cuomo has spent $15.2 million to date on promotional ads and tours and by his budget report for this year, projects that Start-Up NY will cost taxpayers $323 million in subsidies which does not include loss of unmeasured local Village / City / Town and County School tax revenue.
Earlier this month, Gov. Cuomo launched Global NY. The presumptuous program is to act as a State Export/Import Bank and is budgeted for its first year at $35 Million in partnership to the Federal Export/Import Bank. The Federal Import/Export Bank was given a 9-month extension, and is slated for a congressional vote in the UPCOMING Senate and House. To reauthorize the Export/Import Bank, the bill must be passed by both the House and Senate in identical form. Currently it is deemed as carrying excessive government liabilities for corporations and businesses.
Where does that leave NYS taxpayers on this liability if or when the federal program is not reauthorized? Cuomo will have put the horse before the cart if the Democrats lose the deciding vote. Once launched, it will be another pay to play liability tax payers are on the hook for. If Cuomo can spend $15.2 million on a national promotional program for Start Up NY, the cost of international “promotional” tours for Global NY in the coming 18 months as he seeks to establish his mark for a run in the 2016 presidential primaries, should actually start looking “presidential” in cost. Like Obama’s fundraising, it’ll be on the taxpayer’s dime.
Do we suffer from neighbor envy? Do we need to compete with the State of New Jersey in excessive taxpayer Corporate Welfare Tax Subsidies and Benefit Welfare/ Tax Subsidies to maintain the status and being rated as Number One? I really can’t afford any more of these “I’m here to help you” pay to play bargains.
Sincerely,
Florence Alpert
Candor, N.Y.
