NYS NEEDS TO CLOSE THE LOOPHOLES AND ENFORCE OUR TAX LAW
We Need Big Business to Pay Their Fair Share!
Stop Squeezing the Little Guys and Make Mega-Corporations Pay More Than the Average NYer!
Right now, many profitable billion-dollar corporations can pay a lower New York State tax rate than neighborhood small businesses. They pile loophole on loophole, tax credit on tax credit, until some of them are paying little or no taxes at all. That’s not fair!
To make it fair, we need to get rid of the loopholes and rate cuts that have turned the New York Corporate Alternative Minimum Tax into Swiss cheese. New York should make sure businesses with profits of $5 million or more pay a reasonable, minimum state tax payment.
A basic 3.5% Corporate Alternative Minimum Tax would raise hundreds of millions of dollars for essential government services and level the playing field – bodegas and car repair shops shouldn’t pay a higher rate than big banks.
And making reasonable technical changes to preferences and tax credits will make sure profitable big businesses can’t use loopholes to avoid a minimum level of state tax payments.
- END THE “NOWHERE INCOME” LOOPHOLE” FOR BIG OUT-OF-STATE CORPORATIONS
Right now, big out-of-state corporations declare billions in national profits but claim they don’t make any profits in New York. New York companies have to pay more because the out-of-staters don’t pay anything. That’s not fair.
We’ve got to close the loopholes that let multi-state corporations evade taxes on their profits because they claim they don’t have a “corporate presence” in New York.
It’s just common sense -- if you’re making millions of dollars in sales and profits from New York customers, you’re here in New York. And if you’re here in New York, you owe your fair share in New York corporate taxes.
28 of the 45 states with corporate income taxes, including California, Texas and Utah have enacted "throw-back" or "throw-out" rules to limit this drain on state revenues. New York should do the same.
- HEDGE FUNDS SHOULD PAY THEIR FAIR SHARE OF CORPORATE TAXES
Right now, hedge fund “carried interest” profits are entirely exempt from New York City’s Unincorporated Business Tax. And hedge fund kingpins who make their money here but live somewhere else don’t pay New York taxes – unlike car mechanics and grocery clerks. That’s not fair.
We need to get rid of the loophole that lets hedge funds and private equity firms avoid the taxes that thousands of small, medium and big businesses pay in New York.
The New York City Unincorporated Business Tax should cover “carried interest” – the technical industry term for the profit share received by managing partners (usually 20 percent of investment profits) in hedge funds. The New York City Independent Budget Office says it would raise $200 million a year – and even Mayor Bloomberg says special treatment for “carried interest” isn’t fair.
And the New York State Nonresident Personal Income Tax should cover “carried interest” as income, not tax-free capital gains. This reform would raise $50 million a year and eliminate the special deal regular people don’t get.
- MAKE REAL ESTATE PARTNERSHIP INVESTORS PAY WHAT THEY OWE IN TAXES
Right now, many of the investors in Real Estate Partnerships do not pay what they owe in taxes because they simply CHOOSE not to report the income they get from the sale of real estate. If YOU sell your house, you better believe you will be paying taxes on that sale.
These folks are avoiding paying taxes on millions of dollars in profits because NYS is not enforcing the law. We need to audit these Partnerships NOW. This fraud has been going on for years and New York State has been turning a blind eye. It has been estimated that if these wealthy investors paid what they owed in taxes we could have a billion dollars more revenue in NYS to create and save jobs.
TAX FAIRNESS AND TAX REFORM ARE GOOD FOR NEW YORK
New York shouldn’t cut programs for the poor, slash pensions for workers, stop services for seniors and cut colleges if we can close corporate loopholes and enforce tax laws as an alternative.
Call Governor Cuomo and Your State Legislators at
1-877-255-9417 and tell them:
CLOSE CORPORATE TAX LOOPHOLES NOW!
A Better New York for All means making decisions we can be proud of!