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.
3 comments:
Not worth the $millions that it would cost to enact . A waste of a proposal!
The rich companies they want to foot the bill often have the option to pull up roots and leave for the tax friendly states, ie North Carolina.
'bipartisan support'? what does that even mean in New York? It has the support of Democrats and Liberal Democrats?
Politicians just want to suck every cent they can out of the taxpayer to line their pockets and the pockets of their cronies. (See the Floyd Flake/Andrew Cuomo story from today).
And they have to make up for the revenue loss elsewhere - try doubling the sales tax or raising the city income tax.
This proposal to bring the corporate tax closer to other locations in the United States is too little, too late.
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