Cuomo proposes cutting corporate income taxes

Updated: 01/06/2014 6:24 PM
Created: 01/06/2014 12:07 PM WHEC.com
By: Brett Davidsen

Business groups are applauding a plan by Governor Cuomo to cut corporate taxes with a focus on upstate jobs.  The governor provided details of the proposal Monday morning.

The governor is expected to deliver his State of the State address later this week, but he provided a glimpse of his economic agenda Monday, outlining his aggressive tax cut plan for the upcoming session. Much of the plan comes from the recommendations outlined by a commission last month and upstate gets special consideration in an attempt by the governor to grow jobs here.

Gov. Cuomo said, "More tax cuts changes the business climate in New York, changes the reputation of New York, changes the perception of New York, will keep more businesses and will attract more businesses and you grow more revenue.

Any tax cut that impacts small business is music to the ears of Bob Rock. He owns Certified Grinding and Machine in the city of Rochester and has about 20 employees.  He says taxes and regulations make it hard to do business in New York and welcomes the governor's proposals. 

On Monday,  flanked by economic development leaders from around the state, Cuomo outlined a number of tax cutting measures. On the corporate side, the governor wants to reduce the tax rate from 7.1 to 6.5 percent and for upstate manufacturers, he wants to reduce the rate to zero. He also proposed a 20-percent credit on manufacturer's property tax credit, something Rock says could be critical to spurring job growth at his business.

Bob Rock said, “We pay over $30,000 a year in property taxes. So a 20% credit would mean $6,000 to a company of our size. That's a big benefit to us. That may be the difference between us hiring one more person and not hiring somebody."

All of the corporate and personal tax cuts in the governor's proposal are expected to cost about two billion dollars. Cuomo is expected to explain further how he plans to pay for the cuts during his State of the State speech on Wednesday.


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