Statement From Assemblymember Cahill On Tax Reform, Flood Relief And Employment Assistance Legislation

December 7, 2011

(Albany, NY) Assemblymember Kevin Cahill (D-Ulster, Dutchess) released the following statement:

“Reforming the personal income tax structure is by far the most economically sensible and fair solution to balancing the budget while providing tax relief to our struggling middle class and much needed disaster and infrastructure aid to our communities.

“Over the course of the last three decades, the tax burden has shifted dramatically from an equitable distribution of the cost of government across all income classes to a system that heavily favors the wealthy. Without the reforms acted on today, the 2012 personal income tax levy in New York would have remained essentially flat, with families making $40,000 required to pay the top rate. This is an important step toward reversing that trend by reducing the burden on hard working New Yorkers that have been shouldering a disproportionate share for far too long.

“These reforms allow us to take immediate action to address critical issues that have been weighing down our economy, particularly in those areas devastated by Hurricane Irene and Tropical Storm Lee. The flood assistance fund will provide much needed property tax relief, resources for cash-strapped municipalities and grants to businesses, not-for-profits and farms not covered by federal programs or private insurance.

“The package expands the Flood Assessment Relief Act I passed in 2005 by giving localities the option to adjust assessments on heavily damaged properties and provide tax refunds where appropriate. The bill also allows school districts, if they choose to do so, to accept tax payments in installments and request advanced payment of state aid. The $50 million Flood Assistance Fund will give counties access to resources for flood prevention and mitigation projects while providing the state with the flexibility to address unmet disaster costs. It will also allow the state to cover the local share of Federal disaster assistance, a move for which I have been and will continue to be an advocate.

“A new tax credit will be offered to larger businesses impacted by flooding in return for commitments to maintain employment levels at or above pre-storm levels. The bill will create new jobs by expediting state construction projects designed to repair and replace storm-damaged infrastructure.

“The reduction and, in some cases, permanent elimination of the unfair MTA payroll tax is a step in the right direction for the unduly burdened businesses, schools and not-for-profits in Dutchess County. I have been opposed to this tax since its inception and I am pleased that we are finally making progress towards its elimination.

“The legislation passed during the special session will also provide a significant boost to the state’s private sector workforce. Struggling manufacturers will be eligible to apply for tax reductions and credits will be made available to businesses that hire at-risk or disadvantaged youth. Funding is being dedicated to workforce development programs to enhance access to higher education, occupational and technological training, and summer youth employment.

“Action had to be taken to address our economy and help those still struggling from the floods. The measures voted on today are a direct result of the Assembly’s leadership on the issues of tax equity, disaster relief and employment assistance. There are still many challenges ahead, but the legislation we passed will provide a boost for communities in the Hudson Valley and all New Yorkers.”

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