Senate Republicans Push to Protect Long Islanders from Increased Tax Burden
April 3, 2009
(Long Island, N.Y.) In his continuing effort to provide Long Islanders with some relief from the budget plan being pushed by the Democrats, Senator John Flanagan (2nd Senate District) joined with his colleagues in the New York State Republican Conference today to propose a number of amendments that would have protected Long Islanders from an increased tax burden due to the budget process. Unfortunately for all Long Islanders, every one of these tax killing amendments was defeated by the Democrats on partisan lines.
Most notably for Long Island homeowners was the restoration of the $1.45 billion STAR property tax rebate program which is being eliminated in the agreement secretly negotiated by Governor David Paterson, Senate Leader Malcolm Smith and Assembly Speaker Sheldon Silver. Senate Democrats, including those from Long Island, voted together to defeat the amendment.
Senate Republicans initiated the STAR rebate check program, which provides a yearly check mailed directly to homeowners to help ease the burden of skyrocketing property taxes, in 2006. Today’s amendment would have protected $368.64 million in relief for homeowners on Long Island and continued this very successful program.
“Owning a home is a dream to many in our country but it is becoming a nightmare on Long Island. Our homeowners are again being used to balance the state’s budget and it is unbelievable that anyone who represents Long Island could support the removal of this important program,” remarked Senator Flanagan. “For many, the ability to decide how to use their own money helps them make ends meet and it is unfortunate that that ability is being taken away.”
Senate Democrats also unanimously defeated a Republican-sponsored amendment that would have avoided dozens of new taxes and fees included in the State budget. These fees will force an average middle class family of four earning $80,000 a year and residing outside of New York City to pay approximately $2,400 more in taxes under the Democrat-only Budget.
In total, the 2009-10 Democrat-negotiated State Budget increases taxes, fees and other revenue actions by more than $8 billion. Although Senate Republicans were successful in getting $1.2 billion in nuisance taxes removed from the original budget proposal, the final Budget still includes approximately $4 billion in taxes and fees.
The Democrat-only Budget includes the following tax and fee increases:
- Governor’s Proposed Utility Tax Increase - $600 million
- Tax on Family and Individual Health Insurance Policies (DRP) - $240 million
- State and City University Tuition Tax - $220 million
- Shift Healthy NY Direct Pay Stop Loss to Insurance Assessment (DRP) - $180 million
- Hunting and fishing licenses - $178 million
- Hospital Assessment Tax - $158 million
- Limit Itemized Deductions for High Income Taxpayers - $140 million
- Hospital Surcharge Tax - $126 million
- HMO Tax - $120 million
- Governor’s Tax Increase on businesses in Empire Zones - $90 million
- Increased Fees for Automobile Registrations and License Renewals - $90 million
- Impose Fee on Non-LLC Partnerships - $50 million
- Enhanced Bottle Bill - $50 million
- Change Tax of Overcapitalized Captive Insurance Corps - $33 million
- Impose Sales Tax on Transportation-related Activities - $26 million
- Home Care Assessment Tax - $14 million
- Increase Beer/Wine Tax - $14 million
- Cigar Tax - $10 million
- Expand Sales Tax Vendor to Dot-Com’s - $9 million
- Auto Rental Tax - $8 million
- Non-resident Covered Lives Assessment Tax - $5 million
- Highway Use Tax Fee Increase - $5 million
- Tax In-state use of Out-of-State Vehicles - $4 million
- Repeal Underutilized Credits - $2 million
- Gain Tax Nonresident Partner - $10 million annually
- Presence in New York PIT tax – $5 million annually
The Senate Democrats also decided as a conference to defeat a Republican-sponsored amendment that would have stopped the largest tax increase in State history, a whopping $4-billion plus Personal Income Tax (PIT) increase that will affect taxpayers making as little as $200,000 a year and lead to devastating job losses throughout New York.
This massive income tax hike, which will have a disastrous effect on Long Island taxpayers and likely result in thousands of job losses, was ultimately passed as a result of unanimous Democrat support in the Senate following a secret agreement by the three New York City Democrats who now control Albany.
“This state is taxing job creating small-business owners out of business and hard-working people out of our state. These new taxes are an affront to Long Islanders and is the wrong approach for these tough economic times,” stated Senator Flanagan. “This budget fails to deliver needed job creating incentives, fails to protect the middle class homeowner and fails to help our state recover. Clearly, there is a better way.”
In early March, all of the amendments that the Senate Republicans proposed today were included in their alternative budget plan that spends less than the Governor proposed, is able to avoid the $6.2 billion in taxes and fees proposed by Governor Paterson, implements a spending cap to restrain future spending growth and helps businesses create jobs to strengthen the State’s economy. Most importantly, the plan shows how to produce a balanced budget without resorting to a damaging personal income tax hike.
It makes needed investments in education, jobs, and health care and includes the restoration of the $1.7 billion STAR rebate program for middle class families that was omitted from the Governor’s Executive Budget.
The plan leaves $1.2 billion currently in reserves untapped and fully funded, and increases the State’s overall fiscal reserves by nearly $1 billion so New York is on sounder fiscal footing. It also provides for reductions in government spending and other cost cutting measures of $5.5 billion to help restore balance to the State’s finances.
“The Senate Republican Conference is ready to work with everyone to find the solutions that work but we need willing partners to do so. It only takes one Democrat to have the courage to stand up and vote yes on our amendments to stop the tax hikes, restore the property tax rebates, to give school districts mandate relief, to help businesses create jobs, and stop a disastrous utility tax that will drive up the bills of ratepayers across the state. We are proposing ways to make this budget better for the people of this state, yet not one Democrat is willing to join the fight,” concluded Senator Flanagan.
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Posted by News LI Editor · Filed Under Money
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