Job creation bill unveiled
Senate Republicans unveil a bill they say would boost job creation by giving businesses a significant tax cut. Capital Tonight's Nick Reisman explains why there's more going on here than meets the eye.
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NEW YORK STATE -- Senate Republicans unveiled a $450 million business tax cut and incentive plan on Tuesday, a proposal that was immediately met with skepticism it could pass the Democratic-led Assembly.
“I don't believe that I can convince members of the Assembly for a broad, business tax cut package this year,” Governor Andrew Cuomo said.
The plan includes a 20 percent corporate tax cut, the elimination of a tax on manufacturers that would be phased-in over a three year period and a post-production tax credit from 10 percent to 30 percent. Republicans also want to codified a two percent spending cap on the state's budget.
“Some of the proposals that we have will take effect next fiscal year. I think it's important that we send a message to the business community that looks to plan in advance not by day to day that we are serious about creating jobs especially in the small business sector,” Senate Majority Leader Sean Skelos said.
Assembly Speaker Sheldon Silver says the plan is likely a non-starter given its cost.
“Can the state at this point afford further tax cuts? That's the most important thing that we look at and what's the prognostication into the future,” Silver said.
The tax package also serves as a counter to the effort of Assembly Speaker Sheldon Silver to raise the state's minimum wage to $8.50 and tie future increase to the rate of inflation, a move that Skelos insists he's opposed to.
Skelos said, “I've said all along we are not doing a minimum wage increase in the Senate.”
The governor, meanwhile, reiterated the difficulty of passing a minimum wage hike this year, saying it would be more difficult politically then the effort legalize same-sex marriage last year, considered a Herculean success after four Republicans signed on to the measure.
“I believe it's broader and deeper. I believe it's a political, philosophical divide,” Cuomo said.