State Senator Martin Golden has been very open about his support of various Cuomo Tax Incentive Gimmicks
Goal of across-the-board tax cuts is impeded by support of Coumo’s Crony-Capitalist Tax refund and tax exemption schemes
In his State of the State message, Governor Cuomo made it sound like he understands that tax cuts spur job growth. Unfortunately, in practice the Governor’s tax relief program is an example of crony-capitalism at its worst. Cuomo’s signature economic development policy last year was something called “Start-Up NY” (sometimes referred to as “Tax-Free NY”) – maybe you’ve seen the TV adds about it. This Cuomo tax-relief program gives Albany-approved companies, that locate on or near predominantly “upstate” SUNY campuses, tax-free status for 10 years. Of course, this only helps companies with the resources to open or relocate “upstate” and/or the Albany connections to otherwise lobby for inclusion in that particular tax-free status. However, this program has other major shortcomings: at best, it will create under 10,000 jobs ( one-tenth of one percent of the private-sector jobs in New York); and the program will cost NY taxpayers three hundred twenty three million dollars ($323,000,000).
Start-Up NY was a major priority of the Senate Majority Coalition; and Brooklyn Republican-Conservative Marty Golden supported this bill in the NY State Senate which was co-sponsored by his GOP Co-Leader of the State Senate Dean Skelos, even though it gave almost no benefit whatsoever to Golden’s own district. In fact, in his capacity as Chairman of the New York State Senate Select Committee on Science, Technology, Incubation, and Entrepreneurship, State Senator Golden has praised the effect that the new tax incentive will have on various companies that qualify for the program.
Governor Cuomo is also a big supporter of another crony-capitalism boondoggle known as the Hollywood Tax Credit. That program accounts for about a quarter of all New York State business-tax subsidies, even though the film industry generates less than 1 percent of the employment in New York. The real gimmick about this tax relief program is that New York State “refunds” to filmmakers a refundable tax credit of 30 percent of any production costs incurred in New York. In most instances, the NYS taxpayers wind up cutting Hollywood movie moguls a check for the amount due.
Only a couple of days ago, it appears that our Brooklyn Republican State Senator posted a Facebook message that stated, “I am proud to have been a leader of the efforts to create a New York State film tax credit and look forward to its continued success in creating jobs and generating tax revenue for our City and State....” (See Martin J. Golden/Facebook - shared a link, 1/16/14 [https://www.facebook.com/pages/Martin-J-Golden/29214902523]). The problem with that is that there really isn’t much of either coming to New York State when a picture is “made” here. In a typical large budget movie, one-third of the jobs created were for casual temporary employees like “extras,” caterers and set builders; and the production of any movie provides very few sustainable middle class jobs that can support a typical New York family, even on a pro rata basis where a given production company regularly makes movies in New York.
A proper conservative Republican position on either of these programs would be completely at odds with the one supported and the other proclaimed by Marty Golden. An example of such a proper GOP position is the one taken by Kieran Michael Lalor, a “Downstate” GOP Assemblyman from “suburban” Dutchess County. An Op Ed piece expressing his opposition to these kinds of “Cuomo tax gimmicks”appeared in today’s New York Post (See “Cannibalizing New York’s Economy” by Kieran Michael Lalor 1/17/14, NY Post/ Op Ed print version; same as “Andrew Cuomo’s tax gimmicks divide New Yorkers” by Kieran Michael Lalor, 1/16/14, NY Post.com [http://nypost.com/2014/01/16/andrew-cuomos-tax-gimmicks-divide-new-yorkers/]).