Home

Legislative Leaders' 1998 Tax-cut Proposals

Staff Contact:
Tax cut proposal Senate Majority Assembly Majority Senate Minority Assembly Minority
Reduce broad-based business tax rates Cut rate from 9.0 to 6.85%; eliminate Subchapter S differential No proposal No proposal Cut rate from 9.0 to 6.85%; eliminate Subchapter S differential
Reduce energy costs by

reducing taxes

Accelerate existing GRT reduction; cut additional 1% from GRT in 2000; expand Power for Jobs program Accelerate Power for Jobs program by one year No proposal Accelerate existing GRT reduction

Reduce the alternative minimum tax Cut AMT from 3.5 to 2.5% No proposal No proposal Cut AMT from 3.5 to 2.5%
Create tax incentives for securities industry Extend ITC to securities industry Extend ITC to securities industry; most jobs must be in New York State No proposal Extend ITC to securities industry
Reduce truck mileage tax Cut TMT by half No proposal No proposal Cut TMT by half
Accelerate elimination of health-care assessments No proposal Accelerate elimination of tax to 12/1/99 No proposal Accelerate elimination of tax to 12/1/99
Conform with federal change to estate tax for family businesses Fully conform No proposal No proposal Fully conform
Cut sales tax on clothing sales No proposal Raise permanent exemption level to $500; create a new tax-free week No proposal Raise exemption level to $500, and include footwear, for one week each
High-tech tax credits Two new credits for emerging firms Several credits to help software, other high-tech firms No proposal Two new credits for emerging firms
Earned income tax credit No proposal No proposal Raise from 20 to 30% of federal credit No proposal
Other proposals include: Child & dependent care credit increases Child & dependent care credit increases PIT rebates of $100-$200 Gas import tax cut along with GRT

The Business Council of New York State, Inc.; March 27, 1998