E.J. McMahon, president of the Empire Center for Public Policy, gave testimony on Monday at the 2014 Joint Legislative Budget Hearing on taxes. 

He noted that Gov. Andrew Cuomo’s proposed 2014-15 Executive Budget has an emphasis on tax cuts, but stressed that the net effect of the budget would not be a reduction in New York’s state and local tax burden. The complete written testimony can be found on the Empire Center’s website. His key points included the following:

• “Governor Cuomo’s 2014-15 Executive Budget would devote more resources to initiatives described as “tax cuts” than any state budget we’ve seen in quite a few years … Unfortunately, not all of the actions proposed by the Governor would actually result in a net reduction of New York’s state and local tax burden on businesses or individuals. More than half of the recurring value of his total tax package would be devoted to what the governor calls “property tax relief.” These proposals would not cut tax collections but would simply shift an added portion of the local tax burden to the state tax base. “

• “New York needs a more competitive, broadly based, predictable and permanent income tax structure.”

• “It’s also time to permanently enact the property tax cap— by removing the conditional 2016 sunset date from the current tax cap law. The cap on tax levies is the single most important step New York State ever has taken to bring about a long-term reduction in its extraordinarily high property tax burdens.”

• “On balance … the estate tax reform in the Executive Budget can be viewed as a crucial first step towards the ultimate elimination of the tax – which is the only way New York will become truly competitive with most other states.”

McMahon concluded that the state’s tax policy should embrace the message of Cuomo’s first State of the State message: “We have to hold the line on taxes for now and reduce taxes in the future. New York has no future as the tax capital of the nation.”

Learn more about the Empire Center and its efforts to make New York a better place to live and work by visiting www.empirecenter.org.

CONTACT: David Lombardo, (518) 434-3100, [email protected]