Cuomo touts payroll tax plan, but questions arise in Legislature

Posted January 19, 2018

The new tax would apply to vendors outside of NY that sell products to state residents.

Cuomo's speech included his trademark granular details and accompanying slideshow presentation. The plan will not involve tolling bridges, but instead will designate geographic zones in the city where tolls will be in place. It contains no bold initiatives to cut spending or divert money from failed economic development programs.

"Over the next few months, Senate Republicans will be leading the charge to make NY more affordable for its residents and businesses".

While his proposed smaller-than-anticipated 3 percent increase in state aid for education will spark a food fight, we hope it's part of a larger conversation about how NY funds K-12 education. The governor unveiled his $168 billion spending proposal Tuesday. "In many ways this is going to be the most challenging that we've had to do".

"We'll also begin hearing from constituents and groups with their reaction to the proposed budget, including our schools, health care facilities, local governments, not-for-profits and employers", Little said in a statement.

To raise new revenue, Cuomo called for extending the state sales tax on transactions made on such internet sites as Amazon Marketplace and Etsy.

Cuomo also suggested introducing charitable contributions, which California is also considering, that would allow New Yorkers to give to a state-run charity and be able to deduct that contribution on their federal taxes.

The state taxes income - most of that comes from downstate where the big bucks are.

Cuomo finished by telling lawmakers they'll fight together for New York's future, hoping to turn their frequently fractious relationship into an alliance against their federal foe.

The budget makes no new demands for austerity. Last year, the budget was 10 days late.

"We are continuing to review the details of the Executive Budget proposal". With respect to the P-12 level, the Governor said that the state is committed to making sure that local school districts that receive state grants are distributing aid to the poorest schools in their district.

Instead, we got the same old NY budget.

Cuomo has spent several months rallying against the federal tax plan, which he said would effectively raise the tax rate for homeowners and put the state at a competitive disadvantage. "We will restore citizen confidence and ensure management competence". He added that he will review the budget and listen to his constituents on how it may impact them.

Cuomo's proposal holds most spending flat in order to eliminate a $4.4 billion deficit.

But the idea of a new payroll tax may not sit well with all businesses.

Deferring a number of business tax credits through 2020 and imposing new inspection fees on privately operated passenger carries, such as motor coaches.

Among the biggest single revenue raisers is something Cuomo called an "opioid surcharge" of 2 cents per milligram of prescription opioids sold in NY that he said will be paid by manufacturers to raise $170 million to help combat the drug addiction problem. This budget will make this steady migration into a virtual stampede.

Senator Jim Tedisco said in a release that Cuomo and the state need to "stop the governmental malpractice".

"I am concerned about the governor's budget, there's no question", Elia said.

Payroll tax: Cuomo is considering switching NY from an income-tax system to a payroll-tax system to skirt new federal limits on tax deductions.