05/22/2008
Paterson taps brakes on gas tax holiday
Gov. David Paterson, citing both fiscal concerns and his belief that savings would not be passed on to consumers, has signaled his opposition to proposals advanced by Republican legislators in both the Senate and Assembly for a gas tax holiday from Memorial Day to Labor Day. Supporters say that such action would cut the cost of a gallon of gasoline by about 30 cents a gallon and reduce the cost of a gallon of diesel by 35 cents a gallon.
Earlier this month, the Senate passed its gas tax holiday legislation, and the Assembly Minority continues its push for similar action, mounting a petition drive to garner public support for the plan.
NFIB/New York supports the proposed gas tax holiday, as it would provide some, albeit temporary, relief to consumers and businesses alike struggling with the high cost of fuel -- with costs in New York being significantly higher than those of neighboring states.
Although Gov. Paterson's opposition does not bode well for this proposal, we will continue to make the case that New Yorker's need relief from the pain being inflicted at the pump.
Working Families Party proposes hare-brained property tax reform as commission readies report
The New York State Property Tax Commission -- headed by Nassau County Executive Tom Suozzi -- is preparing to issue its report on June 3, which is widely expect to contain a proposal to cap the growth of local property taxes. In our most recent Member Ballot, 82 percent of NFIB/New York members expressed support for such action.
Before the report has even been received, however, the property tax cap might be in trouble. Assembly Speaker Sheldon Silver has signaled his opposition, and as we reported to you, NFIB/New York has called on the speaker to give the property tax cap a fair hearing and an up-or-down vote in the Assembly.
In the meantime, the union-backed "Working Families Party" is proposing their own property tax "reform" plan -- which seeks to fix the property tax crisis by, you guessed it, raising taxes. We're not making this up.
Under the plan they are advancing, which has already garnered the backing of several member of the Assembly, individuals within certain income limits would receive a rebate when their property taxes exceed a set percentage of their income. The plan would be paid for by hiking the state income tax on individuals reporting income in excess of $500,000.
While that may seem like a lot, it is important to remember that some 75 percent of small business owners report their business income through the personal income tax. Furthermore, the tax increase that would go along with this plan would generate approximately $6.5 billion in revenue -- nearly $3 billion more than the rebate plan itself would cost.
This is a thinly veiled effort at a back-door tax income tax increase -- a proposal that was rejected by both Gov. Paterson and the Senate during budget negotiations. It is also sham property tax reform.
As we have said many times before, the problem is not a lack of revenue -- it is out of control spending. Raising taxes to address the fact that New Yorkers are drowning amid the nation's worst property tax burden is a truly preposterous idea. A common-sense property tax cap would provide appropriate downward pressure to contain spending, forcing government to do what small business owners and taxpayers must do: live within their means.
We will continue to make the case for real property tax relief for New York's business and home owners.
Assembly again stalls "scaffold law" reform
The Assembly Labor Committee held a hearing this week on S.4317/A.2528, legislation introduced by Senator Dale Volker and Assemblyman Joe Morelle to reform New York's dreaded "scaffold law."
This bill would establish a comparative negligence standard for claims under Labor Law section 240 and 241 with respect to a disobedient worker. This means that a worker who has been trained in safe workplace practices but whose criminal acts, use of drugs or alcohol, disobedience, failure to use safety devices furnished at the job or comply with safe workplace practices results in an injury would be held responsible, if the worker brought a lawsuit for personal injury, property damage or wrongful death. This approach would encourage employers to provide safety training certified by OSHA or the State Labor Department, and would encourage employees to be responsible for their own behavior.
While this falls short of repeal, it would contain the runaway costs of the current laws in a fair manner by making an employee who directly contributes to their injury liable for the portion of fault that is assessed by a jury. It would bring insurers back into the market and take the price pressure off the industry. It is estimated that this would shave more than $10,000 off the cost of a $100,000 home. It would clarify worker responsibility and establish a uniform standard for the application of the recalcitrant worker doctrine in future court cases, and restore health to the ailing commercial liability insurance market. It speaks to the fundamental issue of fairness and would be an important step toward improving New York's competitiveness and reducing the cost of doing business.
Unfortunately, Assembly Majority members on the Labor Committee voted to hold this bill for consideration, meaning it will once again not move to the floor.
This issue continues to be a major drag on New York's economy and takes a serious toll on New York's construction industry. It drives up the cost of doing business and living in New York, and fixing this outdated and job-killing law is just plain common sense.
You can count on NFIB/New York to continue fighting to repeal or reform the "scaffold law" and fight for broad-based liability reform to lower New York's second-highest in the nation cost of doing business.
Assembly backs off pension bills after fiscal analyst revealed to have been on union payroll
Assembly Speaker Sheldon Silver halted action on a number of pension bills backed by unions after it was uncovered that the actuary analyzing the fiscal impact of the bill was being paid by the same unions -- a fact the actuary had failed to disclose to the Legislature. The analyst in question provided analysis on hundreds of bills the legislature has considered, and admitted that he skewed his work to favor the unions, calling into doubt the fiscal impact of any number of pension related bills on which the legislature has already taken action. This revelation is just one more indication of the undue and sometimes untoward influence big labor has in Albany.
State tax commissioner taps NFIB/New York state director for post
New York State Tax Commissioner Robert Megna has asked NFIB/New York State Director Mike Elmendorf to serve on the Taxpayer Advisory Council. This body provides a venue for communication between the business community, tax professionals and the Tax Department, with an eye toward collaborating to strengthen the business environment. In accepting this invitation to serve, Elmendorf will make certain that the small business perspective is heard by state tax officials.
Governor introduces legislation to encourage long-term care planning
Governor Paterson has introduced legislation to encourage New Yorkers to plan for their long-term healthcare needs by increasing education and outreach efforts while also strengthening consumer protections for long-term care insurance policyholders.
There are 3.2 million New Yorkers -- 17 percent of the state's population -- over the age of 60. This number will grow to 3.7 million by 2015 and to 4.4 million by 2025. Most New Yorkers do not have any long-term care financial plans.
"As baby boomers become senior citizens, the need for long term care is expected to grow rapidly. That trend will place a financial burden on the personal resources of individuals and their families, not to mention on the State's Medicaid program," Gov. Paterson said in a press release. "The bill I have sent to the Legislature will encourage New Yorkers to prepare for their future long term care needs, helping them live out their senior years as comfortably and independently as possible. This will also reduce their potential Medicaid dependence, which will benefit the state as a whole."
The governor's legislation would:
- Protect Income under the Partnership Program: The New York State Partnership for Long Term Care Program was designed to encourage more people to purchase long-term care insurance policies. Currently, an individual who exhausts the coverage under a Partnership Program policy becomes eligible for Medicaid, but a certain amount of his or her assets will be protected. This bill will allow a certain amount of income to be protected as well, thereby providing a further incentive for individuals to purchase insurance under the Partnership Program.
- Require an External Appeals Process: The bill would require insurers to make an external review process available to the insured.
- Require Prompt Payment of Claims: This proposal would expand the existing Prompt Pay Law to apply to long term care insurance claims, so that those claims will be paid in the same time frame as acute medical care claims and other health insurance claims.
- Expand the Long Term Care Insurance Education and Outreach Program to educate New Yorkers about and assists them in choosing long term care insurance policies.
- Revise the Care at Home I/II Waiver Program: The Care At Home I/II Medicaid waiver program serves children under 18 years of age who have physical disabilities and require a level of care that would otherwise be provided in a nursing facility or hospital. His proposal would change the financial eligibility standard from an individual to an aggregate measure, similar to the standard used in other Medicaid waiver programs, to include children who currently do not qualify for services solely because home care would be more expensive than institutional care.
