For Release — June 25, 2010
Albany tradition of overtaxing and overspending continues says Business Council
ALBANY— “Albany's politicians appear to be reverting to their old tricks as they talk about raising billions in taxes to close the state budget,” said Kenneth Adams, president and CEO of The Business Council of New York State, Inc. “It is very disappointing that rather than lowering the cost of government the negotiations have turned to even more taxes. The Senate majority's budget resolution rejected new taxes, but they seem to be walking away from that commitment.”
New York already has the highest state and local tax burden in the nation according to The Tax Foundation.
“This year Albany has already raised more than $1 billion in taxes on manufacturers, tobacco products and insurance policies. Now they are talking about even more taxes that will do nothing but kill jobs and impede economic recovery,” said Adams.
One proposal would increase all New Yorkers' energy bills by increasing taxes on coal-fired and nuclear power plants. The Public Policy Institute, the research affiliate of The Business Council, has documented that taxes already make up more than 25 percent of New York's energy bills. This will only add to that.
Another proposal to defer tax credits already earned by businesses would not only be a tax increase on employers who are struggling in this recession. It would be another broken promise to businesses that have invested in New York believing in the state's economic development incentives. It will make it harder for the state to attract investment and jobs in the future because employers will not believe the state's offer.
Taxing sugary drinks and increasing the sales tax on clothes will only depress retail activity in the state and damage businesses and their workers.
“Albany raised taxes by more than $8 billion last year only to find itself with another huge deficit. Raising taxes again this year will produce the same result and severely damage our economy. To become competitive and put our budget in balance going forward New York must cut spending,” concluded Adams.