Friday, January 17, 2014

Cuomo “Tax Gimmicks” Supported by Marty Golden openly attacked by GOP Assemblyman in NY Post Op Ed

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 []). 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 []).


Galewyn Massey said...



“You may have seen the ads: they promise you can "start a business here and pay no taxes for ten years." *** Produced by Empire State Development, the ads tout "Start-Up NY," a tax incentive plan to grow business in New York State. *** At a Lake Champlain Chamber of Commerce breakfast in Burlington Monday, someone asked Gov. Peter Shumlin (D-Vt) why Vermont isn't doing the same thing. *** "I know this might come as a surprise to some of you," Shumlin began, with more than a hint of sarcasm. "But I am not running for President of the United States. I know you're disappointed," he said, inciting laughter among the crowd of lawmakers and businesspeople. "I think our Governor to the West is," he said, referring to Gov. Andrew Cuomo (D-N.Y.)” (See “Shumlin Takes a Dig at Cuomo's "Start-Up NY" Ads and Plan” by Stephen Machado, 1/13/14, []).

The Vermont Governor and another expert also explained what was wrong with Cuomo’s approach in New York from fiscal and public policy perspectives. The Vermont governor said he had no plans to spend Vermont's money on an ad campaign to compete with New York for jobs – "I'm not going to put up ads.... and spend tons of loot offering tax incentives that cannibalize [other] states." Governor Shumlin went on to state that s New York's tax incentives will have to be paid for by the next generation – "It's when [Governor Cuomo is] gone, and the next guy's gotta take the job...that you're stuck with it...." UVM political science professor Garrison Nelson agreed with his home state governor saying, "That's what happens. It's just kicking the can down a generation or so." Professor Nelson also pointed out New York is in dire straits when it comes to job growth; Vermont has the 5th lowest unemployment rate in the nation, but New York is way down at 35th.

Anonymous said...

r u saying golden has cuomo's back and turns his back on christie?

Anonymous said...

Cuomos guy on PA Foye leaked the Christie cover-up to the press.

That fact is not in dispute.

Galewyn Massey said...

Not yet....