During Governor Cuomo’s extraordinary session this Wednesday and Thursday a bill to overhaul New York State’s tax code was approved by all but 8 members of the entire state legislature. (Several members were also excused and at least one was on vacation.) The bill has many positive components supported by Unshackle Upstate along with many local business organizations .
Governor Cuomo has led the way to tax cuts for over 4 million middle class New Yorkers. The bill also provides $50 million in extra relief for upstate areas affected by the recent flooding from Hurricane Irene and Tropical Storm Lee. It presents $25 million in tax saving for upstate manufacturers and will allow construction projects to organize work under a single contract, known as Design Build, for an entire project (this can shorten construction time for projects by 9 to 12 months).
This is a first step in the right direction. As mentioned in our joint “Let New York Work” agenda, reducing the cost of construction projects through a Design Build delivery method is key to increasing building and development around the state. Yet, while Design Build and tax cuts are crucial, there is still work to be done. Spending in New York State continues to outpace the rest of the nation. Tax cuts are not enough if we do not fix the state’s spending problem as well. They have to be done in conjunction with each other. And we still need regulatory relief for New York State businesses and mandate relief for our local governments. Tax cuts and tax caps cannot work alone.
New York’s Middle Class Tax Cut and Job Creation Plan is beneficial all around the state. The bill was passed with bipartisan support in both houses. It reduces taxes for the middle class and manufacturers. It invests in job creation and job retention. We can still do more.
Cooperation will be the key to any success New York hopes to achieve in 2012. Both sides, both parties, must continue to lower spending, implement regulatory overhaul, and apply meaningful mandate relief to local governments. Those items will be on our 2012 agenda where we will unlock New York’s potential.