Assemblywoman Russell: Governor’s Budget ‘Gimmick’ is Wrong, Hurts Working Families and Small Businesses

Governor’s budget would defer income and business tax refunds
February 12, 2010

Assemblywoman Addie J. Russell (D-Theresa) is criticizing Governor David Paterson for aspects of his budget that would harm both working families and small businesses by deferring tax refunds until the next fiscal year.

“Families and small businesses count on their tax refunds to make ends meet, and by freezing refunds, the governor’s holding on to money New Yorkers need in their pockets now,” Russell said. “Overpayments belong to the taxpayer and should be returned as quickly as possible, not be used as an interest-free loan by the state. Our families can not afford it.”

Under the governor’s plan, New Yorkers who file their taxes electronically will have to wait months for a refund instead of days, a move that will delay the return of more than $500 million until the next fiscal year.

Also, the governor has frozen $200 million in business tax refunds, which will hamper already struggling small businesses and prevent them from hiring new employees.

“Right now we need to get New Yorkers back to work, and that means doing what we can to create new jobs right here at home,” Russell said. “Small businesses are the backbone of our economy, and as long as they can not hire, New York is not going to get back on track. The governor’s budget would tie the hands of small businesses and force our economy further in the wrong direction.”