Action needed to win another major tax reduction in 1998
TO: Chambers of commerce/regional associations
We're told that Senate Majority Leader Bruno will soon introduce legislation to enact the major business-tax reduction package he proposed several weeks ago. As you know, continued progress in reducing New York's tax burden is one of our very highest priorities for 1998. The Senate Majority plan represents exactly the kind of progress we need:
- Reducing the top business tax rate from 9 to 6.85 percent. Reducing the alternative minimum tax on profitable corporations from 3.5 to 2.5 percent. Creating a major, new tax incentive for securities industry jobs to locate in New York State. Reducing Subchapter S corporation taxes significantly. Expanding the JOBS NOW fund.
- Reducing the truck mileage tax.
Including several smaller changes, Senator Bruno's plan would cut business income taxes by roughly $900 million -- perhaps 30 percent of the current total. Meanwhile, we're also told the Assembly Majority is considering a tax reduction package, including new business tax cuts. This is truly an historic opportunity to win the further tax reduction New York needs to become more competitive.
Your help in making the case for major tax reduction this year is absolutely essential. And, contrary to recent years, there seems to be a chance that this year's budget might be adopted near the April 1 deadline. So we need to act as quickly as possible. We ask that you take these steps, in the coming week to 10 days:
- Contact your local representatives in the Senate. Tell them the business community strongly supports the Senate Majority tax-reduction package, and we hope they will personally let Senator Bruno know they strongly support it, too.
- Contact your local Assembly members. Tell them New York needs to reduce business taxes further, and that the elements of the Bruno package would go a long way to make New York more competitive. We look forward to the Assembly's proposals for further business tax reductions.
- Write to Governor Pataki. Let him know that major business tax reduction must be the next big step in making New York "the comeback state," and we are hopeful that he will support significant business tax reduction in budget negotiations with the Legislature.
- Ask your members to get involved. They should write, call or personally talk to local legislators as well.
In case you haven't seen it, click here for the Senate Majority proposal outlined by Senator Bruno several weeks ago.