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Business Buyers Beware: Gov. Cuomo's "Tax Free" New York TV Pitch is a Con Job
Townhall ^ | 02/19/2014 | Donald Lambro

Posted on 02/19/2014 2:52:41 PM PST by SeekAndFind

New York Governor Andrew Cuomo is airing TV ads around the country that offer tax-free status for 10 years to new business start-ups entering his state.

The ads' claims are deceptive because they come with a lot of government strings attached. You only get a tax cut if you put your business where the state tells you to put it, plus meet other state requirements. Critics say Cuomo's sweeping claims are not what they're cracked up to be.

Once again, not unlike President Obama's tax credit proposals, the Democrats think they can dictate the rules that produce successful businesses and lots of jobs. It did not work nationally, and it isn't going to work in New York where, after Cuomo's first three years in office, the statewide jobless rate remains over 7 percent.

In New York City, unemployment is a recession-leaning 8.1 percent.

"Will Gov. Cuomo ever stop with the tax gimmicks? Our beleaguered state economy needs more than political plans that pick winners and losers," the New York Post lectured the governor last month.

The exaggerated claims in Cuomo's "Start-Up NY" TV ads do not to reach out to major retail and wholesale firms, or medical service businesses and many other business sectors. Instead his tax cut plan focuses on high-tech and manufacturing companies that must locate their firms on or near predominantly "upstate" university campuses.

Moreover, businesses that qualify could lose their tax-free status if they do not produce the required number of jobs under Cuomo's program. "And the program Cuomo called 'bold' is limited to just 10,000 jobs -- one tenth of a percent of the private-sector jobs in New York," the Post said.

In another blistering critique last week, Americans for Tax Reform, an anti-tax lobbying group, said "Cuomo is blowing smoke" on his tax cut claims.

"A closer examination of Gov. Cuomo's proposed tax changes reveals that in most cases, they would not result in a net reduction in New York's state and local tax burden," they said.

In fact, upon closer examination of the tax plans' details, it is shifting of tax burdens, rather than reducing tax rates.

E. J. McMahon, who heads up the Empire Center for Public Policy, has testified that more than half of Cuomo's proposed "tax cuts" in property tax relief are actually "a tax shift. That is, they take a levy that is being assessed on the local level and shift it to the state level," ATR said.

Cuomo came into office by declaring that the state had to "change the perception of New York as a high tax state." And he's won some praise in certain quarters just for suggesting that the state's economic problems are the result of its oppressive, job-killing tax levels.

The non-partisan Tax Foundation's State Business Tax Climate ranks New York last out of the 50 states. It's top income tax rate for individuals is 8.82 percent, the second highest in the country.

He named a bipartisan panel led by former Gov. George Pataki, a Republican, and former State Comptroller H. Carl McCall, a Democrat, to propose a tax reform plan that has received mixed reviews.

What's missing in Cuomo's plan to get New York's job-challenged economy growing again, says Americans for Tax Reform, is a flat out reduction in the tax rates across the board.

"If Gov. Cuomo is serious about lowering the tax burden on hardworking New Yorkers, he should take steps to lower both the individual and corporate income tax rates," ATR says.

And he should entirely phase out the "Millionaires Tax" that he pushed through the legislature in 2011 which the the state Assembly's Majority Ways and Means staff said was an "unsustainable" revenue source.

Cuomo's plan calls for lowering the death tax from 16 to 10 percent, but that will still leave New York "as only one of 14 states that imposes any tax on the value of property and assets left to others as a result of dying," ATR says. Better to phase it out entirely.

In many respects, his plan is less of a tax cut to help create jobs than a political strategy to help him appeal to upstate voters, where he is weakest, in the fall election.

A Quinnipiac University poll shows him with 76 percent support in New York City, but 49 percent support among upstate voters where the state's manufacturing industry is struggling.

Cuomo should take a page out of the tax cut plan that was enacted by New Mexico's Gov. Bill Richardson who advised his party that "we have to be the party of growth and the American dream, not the party of redistribution."

Richardson, a two-term governor between 2003 and 2011, saw that the surrounding states levied income tax rates that were much lower than New Mexico's. He cut taxes across the board, slashing the top income tax rate from 8.2 percent to 4.9 percent over five years.

Not all of his tax changes and, especially, his spending policies were right by any means. But his economy grew, and Inc. Magazine gave him a four star rating for his pro-growth tax cuts. He created thousands of new jobs and balanced his budget, to boot.

But outside of New Mexico, Richardson's tax cuts were politically unpopular with liberal Democrats when he ran for president in 2008.

I recall a campaign speech he delivered at a Democratic National Committee event in Washington where he touted his tax cuts, only to hear a murmur of hisses in the room.

Barack Obama, with dreams of enacting higher income and business tax rates to bankroll his big spending plans, won the presidency. And we see the result in a sluggish economy, weak job growth, and shrinking labor force.

Cuomo is betting that his tax plan will help re-elect him in November and put him into a position to seek the White House after that.

But it's going to take a lot more than slick TV ads and devious, tax shifting gimmicks to erase New York's anti-business reputation as a high tax, high unemployment state.


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: New York
KEYWORDS: business; newyork; ny; taxes; taxfree; trickeration

1 posted on 02/19/2014 2:52:41 PM PST by SeekAndFind
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To: SeekAndFind

Tax Free until you are established then the “Rat’s Trap” snaps on your neck and you are stuck to be milked like a cow in a holding chute....


2 posted on 02/19/2014 2:56:02 PM PST by GraceG
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To: SeekAndFind

Though Upstate NY is fine on appearance, who would move a bidnuss there?


3 posted on 02/19/2014 2:59:59 PM PST by Paladin2
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To: SeekAndFind

Let the idiot lefties buy into this, the more we concentrate them, the less area they control other places.


4 posted on 02/19/2014 3:00:57 PM PST by JSDude1 (Defeat Hagan, elect a Constutional Conservative: Dr. Greg Brannon!)
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To: SeekAndFind

“...change the perception of New York as a high tax state.”

...love it.

Note that the REALITY THAT IT INDEED IS A HIGH TAX STATE is obviously not considered to be the problem.


5 posted on 02/19/2014 3:01:05 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: SeekAndFind

He is trying to be like mac daddy where when his lips are moving he is lying.


6 posted on 02/19/2014 3:01:19 PM PST by chiefqc
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To: SeekAndFind
Ooooo, scary.
There's no such thing as a free lunch and Cuomo is offering one. SCARY!
7 posted on 02/19/2014 3:01:40 PM PST by cloudmountain
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To: SeekAndFind

Quick, concise translation: to bamboozle more hard-working people to come here and support our welfare state.


8 posted on 02/19/2014 3:02:54 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: SeekAndFind

Only the village idiot would consider moving a business into New York.


9 posted on 02/19/2014 3:03:13 PM PST by Oldhunk
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To: SeekAndFind

Honestly - what business owner is just gonna move or establish a business in NY on this promise without first looking under the covers? At best - the commercials amount to campaign propaganda for Cumo to be absorbed by those already trapped within it’s borders.


10 posted on 02/19/2014 3:04:14 PM PST by capydick (''Life's tough.......it's even tougher if you're stupid.'')
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To: SeekAndFind; All

If I understand correctly, NY also wants only pro-choicers in the state.


11 posted on 02/19/2014 3:09:43 PM PST by Amendment10
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To: Amendment10
>> If I understand correctly, NY also wants only pro-choicers baby killers in the state.
12 posted on 02/19/2014 3:15:01 PM PST by ROCKLOBSTER (Celebrate "Republicans Freed the Slaves" Month.)
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To: SeekAndFind

I laugh at these tax break gimmicks to get new businesses...perhaps the reason you need tax breaks to attract new businesses is that your tax rates are too high. Imagine how many businesses could be attracted if taxes were lowered for all businesses.


13 posted on 02/19/2014 3:15:49 PM PST by The Great RJ
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To: SeekAndFind

!


14 posted on 02/19/2014 3:18:31 PM PST by skinkinthegrass (The end move in politics is always to pick up a gun..0'Caligula / 0'Reid / 0'Pelosi)
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To: The Great RJ

Reading carefully, one has to get in bed with some university “research” or other con arrangement to get the “tax brake”. Wasting money on annoying crappy lying advertising, baaaaaarf!


15 posted on 02/19/2014 3:20:45 PM PST by Leo Carpathian (FReeeeepeesssssed)
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To: SeekAndFind

These TV ads run all the time around here. I tell my friends and relatives in NY “aren’t you glad millions of your tax dollars are being spent in Maryland and Virginia on stupid ads that no one believes anyway. Maybe your taxes in NY can be increased even more to pay for more ads.”


16 posted on 02/19/2014 3:23:48 PM PST by detective
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To: GraceG

The proper thing to do, and this was done by several companies is take the tax deal, take your profits and build a new pant in the south. Two years before, the bill comes due, move you operations to South Carolina or Texas, and then there is nothing left to tax. Leave the mess in NY.

For proof of this....see Wheatstone.

http://www.wheatstone.com/

Wheatstone did it in Syracuse in the 1990’s under Mario’s Enterprise Zone plan. Moved in to NY from Connecticut and split to North Carlina before the taxes caught up with them. I don’t blame Wheatstone, they did what any sane business owner would do. Actually, it a fine model of how to play it, and they ended up with a sweet place in NC to boot.


17 posted on 02/19/2014 3:26:46 PM PST by Ouderkirk (To the left, everything must evidence that this or that strand of leftist theory is true)
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To: SeekAndFind

Not all liars are democrat politicians s but all democrat politicians are liars.


18 posted on 02/19/2014 3:27:46 PM PST by Iron Munro ("Show me the man, and I'll show you the crime." - Lavrentiy Beria (& Eric Holder))
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To: SeekAndFind

Saw a couple of those ads on the tube & just had to laugh.
Not surprised that they come with a couple hundred pages
of “fine print”.


19 posted on 02/19/2014 3:29:27 PM PST by indthkr
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To: SeekAndFind

Top rate of 8.3% ? CALIFORNIA is much, much worse:

Tax Bracket
(Single) [2] Tax Bracket (Couple) [3] Marginal Tax Rate
$0+ $0+ 1.00%
$7,582+ $15,164+ 2.00%
$17,976+ $35,952+ 4.00%
$28,371+ $56,742+ 6.00%
$39,384+ $78,768+ 8.00%
$49,774+ $99,548+ 9.30%
$254,250+ $508,500+ 10.30%
$305,100+ $610,200+ 11.30%
$508,500+ $1,017,000+ 12.30%


20 posted on 02/19/2014 3:30:13 PM PST by Selene
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To: Paladin2
Though Upstate NY is fine on appearance, who would move a bidnuss there?

Upstaters are doomed to a life in democrat hell because they are hugely outnumbered by the Free Stuff Armies in NY City and a few other democrat plantations.


21 posted on 02/19/2014 3:30:25 PM PST by Iron Munro ("Show me the man, and I'll show you the crime." - Lavrentiy Beria (& Eric Holder))
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To: Paladin2

RE: Though Upstate NY is fine on appearance, who would move a bidnuss there?

There used to be a time when upstate New York was abuzz with business activity — Eastman Kodak, Corning, Bausch and Lomb, M&T Bank, Constellation Brands, Paychex, etc.

Now all shadows of their former selves, many moving their operations to other places.


22 posted on 02/19/2014 3:37:33 PM PST by SeekAndFind
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To: SeekAndFind

A Neu Yuk State pol is telling a lie!

Tell us it ain’t so!


23 posted on 02/19/2014 3:38:14 PM PST by GladesGuru (Islam Delenda Est - because of what Islam is and because of what Muslims do.)
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To: SeekAndFind

NY’s plan is the same as Deng Xiaoping’s Special Economic Zones....allowing some capitalism to practice amid communism.....


24 posted on 02/19/2014 3:39:55 PM PST by GenXteacher (You have chosen dishonor to avoid war; you shall have war also.)
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To: detective

I’ve seen them running in Texas and Alabama also. What a waste of money.


25 posted on 02/19/2014 3:43:21 PM PST by ken in texas
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To: SeekAndFind

You couldn’t pay me enough to move or start a business in that sewer of a state.

I’ll stay in Texas.


26 posted on 02/19/2014 3:44:17 PM PST by unixfox (Abolish Slavery, Repeal the 16th Amendment)
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To: SeekAndFind

Don’t neglect the Curtis-Wright and Westinghouse plants at the Buffalo Airport.


27 posted on 02/19/2014 3:44:45 PM PST by Paladin2
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To: SeekAndFind

Great post, great thread. Thanks to Donald Lambro.

The state’s debt to GDP ratio is one of the highest in the nation.

http://www.usdebtclock.org/state-debt-clocks/state-of-new-york-debt-clock.html

Democrat Crime Syndicate deceiver on a sinking ship ALERT!


28 posted on 02/19/2014 3:46:57 PM PST by PGalt
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To: SeekAndFind
every RAT governor in my lifetime has been as useless or WORSE than the one before it, i shudder to think what kind of new abomination will be the next RAT contender... prolly a full blown, filthy disease ridden queer
29 posted on 02/19/2014 3:46:58 PM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: SeekAndFind

I don’t get it, liberals raise taxes and businesses leave then they offer tax free deals for businesses to come back.


30 posted on 02/19/2014 3:59:50 PM PST by martinidon
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To: Chode

Sounds like central planning to me. They hook you on pseudo economic freedom at first, then you pay out the nose and will be reminded you should never havetaken the bait. Dont forget despite the taxes you will have to deal with their insane regulations. I wouldn’t even want to start a dairy or so much as tap a maple tree to make syrup there. Unfortunately everyone else there who can’t find a job in NY will soon come crawling for their piece of your business.


31 posted on 02/19/2014 4:02:01 PM PST by inchworm
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To: SeekAndFind

Kinda sad that a State has to run ads that say, “Hey, we’re not nearly as awful as you’ve heard.”

When, in fact, it is that bad and they are actually lying.


32 posted on 02/19/2014 4:06:03 PM PST by Noamie
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To: GraceG

I see that commercial and I remember the gate at Auschwitz:

“Work will set you free.”


33 posted on 02/19/2014 4:07:05 PM PST by Noamie
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To: ken in texas
“I’ve seen them running in Texas and Alabama also. What a waste of money.”

Well at least they are putting money into the economy in these states. NY taxpayers are forced to pay to buy ad time on TV stations in other states.

34 posted on 02/19/2014 4:09:05 PM PST by detective
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To: martinidon
“liberals raise taxes and businesses leave then they offer tax free deals for businesses to come back.”

These supposed “tax free deals” are just bait and switch. Once a company invests money in NY state you are at their mercy.

Remember the line in Rodney Dangerfield's movie Back to School where the professor talks about the cost of building a factory and Rodney says you left a lot out. Politician's with their hands out and mafia extortion etc. That is what it is like in NY.

35 posted on 02/19/2014 4:14:44 PM PST by detective
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To: detective

Government now makes the Mafia look like pikers…and they do not have to kill anybody..


36 posted on 02/19/2014 4:24:20 PM PST by Hojczyk
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To: SeekAndFind
Cuomo should invite ‘green’ companies to New York City. Give them fake tax breaks up the wazoon and cash on the barrel-head.

The cash gifts will allow liberal taxpayers an opportunity to ‘invest’ in liberal lunacy... I mean invest in 'green jobs' for New York.

37 posted on 02/19/2014 4:25:18 PM PST by GOPJ ( America's drifting into totalitarianism because the left's exploitation of social failures.Greenfi)
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To: SeekAndFind

Friendly suggestion to any business executives thinking of moving to New York - talk to businessmen who have MOVED OUT first.


38 posted on 02/19/2014 5:11:41 PM PST by Enterprise ("Those who can make you believe absurdities can make you commit atrocities." Voltaire)
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To: detective
...millions of your tax dollars are being spent in Maryland and Virginia on stupid ads that no one believes anyway.

His ads are running out of Nashville stations, too.

Us Tennesseans, especially gun owners, are laughing out loud at them since one of New York's gun manufacturers has decided to build it's new factory here.

And without strings attached or told where to build or any sundown tax limitations.

Just Tennessee's business friendly climate, low taxes and union free labor

C'mon in, boys...The water is fine...
39 posted on 02/19/2014 5:18:17 PM PST by RedMonqey ("Gun-free zones" equal "Target-rich environment.")
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To: martinidon
I don’t get it, liberals raise taxes and businesses leave then they offer tax free deals for businesses to come back.

I never understood that in liberals, either....until.....

They whine incessantly about there being no job opportunities yet they penalize any business that tries to establish itself with high or higher taxes and useless regulations.

Businesses should to pampered just on the sole (supposed goal) of giving the welfare recipients a useful occupation.

Of course that's the reason. These newly employed people would be grateful, and give loyalty, to a degree, to the business and not Sugar Daddy Big Government. Hence no political support from self reliant, independent voters.

Liberalism needs victims whom they can "rescue"
40 posted on 02/19/2014 5:34:32 PM PST by RedMonqey ("Gun-free zones" equal "Target-rich environment.")
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To: SeekAndFind

I just saw one of theses ads showing the post card images of my area.

One point to be made is that my area has historically, for at least 35 years that I know of, the LOWEST unemployment rate in the entire state.


41 posted on 02/19/2014 5:39:24 PM PST by faucetman ( Just the facts, ma'am, Just the facts)
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To: Selene

NYC also has an income tax.... the city!!


42 posted on 02/19/2014 5:45:13 PM PST by GeronL (Vote for Conservatives not for Republicans!)
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To: martinidon

Here is the video from Rodney Dangerfield. It starts at the 2 minute point. It should be called trying to do business in NY.

http://www.youtube.com/watch?v=YlVDGmjz7eM


43 posted on 02/19/2014 7:35:47 PM PST by detective
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To: ROCKLOBSTER; All
>> If I understand correctly, NY also wants only pro-choicers baby killers in the state.

Thanks for correction.

44 posted on 02/19/2014 10:54:33 PM PST by Amendment10
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To: Amendment10

No point in being polite to the murdering vermin.


45 posted on 02/20/2014 8:07:14 PM PST by ROCKLOBSTER (Celebrate "Republicans Freed the Slaves" Month.)
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