Cuomo Considers Changing N.Y. Tax Code as Economy Struggles

Thursday, December 1st, 2011

By Freeman Klopott

Governor Andrew Cuomo is considering restructuring New York’s tax code as he prepares a budget that must close a deficit as large as $3.5 billion after a temporary surcharge on those earning at least $200,000 expires Dec. 31.

Cuomo has said he opposes the state’s so-called millionaire’s tax. With the levy set to expire at year’s end, he’s now discussing a broader rethinking.

“What I’m looking at is what do you do with the tax code and how you use the tax code to stimulate jobs,” the 53-year- old first-term Democrat said on WGDJ in Albany today.

The midyear update to the financial plan revealed a budget deficit that’s expected to widen while revenue from Wall Street slumps amid fears of another global economic meltdown. Comptroller Thomas DiNapoli issued a report in October that said that finance, which accounted for 23.5 percent of wages paid by businesses in New York, is likely to shed 10,000 jobs by the end of 2012…

…Changing the tax code may create jobs, said Senator Liz Krueger, a Manhattan Democrat who headed the Select Committee on Budget and Tax Reform from 2009 to 2010. The committee recommended the state end corporate tax breaks, Krueger said in a telephone interview….

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