Critics fault Cuomo's bank tax proposal

Created: 03/13/2014 1:37 PM WHEC.com

Gov. Andrew Cuomo's proposal to simplify state bank taxes contains a provision that would let New York's big investment banks pay tax on 8 percent of their securities income, which some critics call a gift to Wall Street.

That provision would apply to revenues from dealing and trading in stocks, bonds and other financial instruments, and not from lending, which is most banks' biggest line of business.

It assumes about 8 percent of securities income for New York banks comes from New York business, the rest from elsewhere, based on a gross domestic product formula.

James Parrott, Fiscal Policy Institute economist, says New York's share of investment banking is about 39 percent.

According to the Cuomo administration, the changes will boost New York jobs and simplify a complex tax structure.

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