What Gov. Cuomo's Small Business Tax Reduction Plan Really Means for NFIB Members

Date: March 02, 2015

The vast majority of small business owners do not pay the corporate franchise tax

In January, Gov. Andrew Cuomo began unveiling his 2015 agenda, which includes a 4 percent small business tax cut on the corporate rate. For some small business owners, this is good news, but for many others, the tax reform measure does nothing to ease their burden.

“The vast majority of small business owners do not pay the corporate franchise tax in New York,” says Mike Durant, NFIB’s New York state director. “While Gov. Cuomo is finally acknowledging the importance of small business in New York, his tax plan is dramatically missing the mark. We support the additional tax cut proposed in his budget for our members that pay the corporate rate, but are currently engaged in negotiations with both the administration and the legislature in pushing for broad tax relief that will fully capture small employers.”

Durant says these negotiations are currently revolving around the personal income tax, through which more than 90 percent of small businesses pay their businesses taxes because they are structured as pass-through entities.

“The best tax policy is broad and does not artificially create an environment of winners and losers,” Durant says. “Broad tax reform that targets the personal income tax rate will finally reduce costs for New York’s small businesses.”

For Lou Basso, owner of Alcott HR Group and NFIB/New York Leadership Council member, this modest tax reform proposal does not help his business, and he says that while some small businesses do benefit, it’s the exception rather than the rule. What would really help, he agrees, is income tax reduction at the federal and state level.

Basso’s firm supports more than 300 small businesses in New York state, many of which are NFIB members, with payroll, human resources, government compliance and health benefits services, so he sees their burden firsthand.

In the next month, NFIB/New York will be urging lawmakers to amend the small business tax reduction plan to more broadly benefit small business owners as well as to reject any increase in the minimum wage and to reject the health insurance exchange tax.

NFIB members added their voices to the debate and spoke directly with lawmakers about how these issues impact their business on Tuesday, March 3, when NFIB/New York will hold a Small Business Lobby Day. Members can also visit www.NFIB.com/NY, where there is a Take Action page available for contacting legislators through email, Twitter and Facebook.

Related Content: Small Business News | New York

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