APRIL 1998Governor Pataki calls for lower alternative minimum tax
Assembly members seek to repeal trucking tax; two houses start negotiations
The momentum for a major package of business tax cuts continued to grow, as Governor Pataki endorsed a reduction in the alternative minimum tax (AMT) from 3.5 to 2.5 percent.
The AMT hurts New York manufacturers by sharply limiting the value of the state's major incentive for large and small manufacturers, the investment tax credit. Senate Majority Leader Bruno and his conference have already proposed an AMT cut.
Governor Pataki echoed that call at Small Business Day in Albany March 30: "This year we will continue to cut job-killing taxes."
Meanwhile, 36 members of the Assembly representing every region of the state urged Speaker Silver to support repeal of the truck mileage tax. The Senate has proposed halving the tax, which is 6.6 cents per mile for large trucks.
"Eliminating the TMT will result in over 2,000 new jobs," Assemblyman Joseph Robach and his colleagues wrote in supporting repeal of the tax.
Senate and Assembly leaders began meeting as the General Budget Conference Committee to negotiate next year's budget.
In the Subcommittee on Taxes and Economic Development, Senator Goodman expressed willingness to consider some of the Assembly's tax cuts as alternatives to elements of the Senate plan.
The subcommittee also discussed expansion of the Jobs Now fund by $40 million in 1998 compared to the $20 million proposed by Governor Pataki.
Meanwhile, The Business Council also expressed support for several elements of the Assembly Majority's high-technology agenda.
April 1, 1998