Mayor Bill de Blasio proposed a major reform of New York City’s corporate tax structure Monday. If enacted, it would be the biggest tax shift since the 1940s.
The reforms would ease the burden on small business owners and manufacturers, while raising taxes on a small number of large companies through broadening the city’s overall tax base. Overall the plan is revenue neutral, meaning that the city budget will be little affected, according to a statement from the mayor’s office.
The plan has bipartisan support, according to officials, and comes after years of complaints from small business owners upset with the current tax systems.
Some small businesses could see a benefit of about $2,000 a year.
Small non-manufacturing businesses with less than $1 million in net income would see their tax rates reduced from 8.85 percent to 6.5 percent. Annually, that would add up to an average benefit of nearly $800, according to the press release.
Small manufacturers with less than $10 million in net income would reap an average annual benefit of nearly $5,300, as their tax rate would fall from 8.85 percent to 4.425 percent. Larger manufacturers, with incomes between $10 million and $20 million, would get a smaller rate reduction.