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Upstate NY Manufacturers Hopeful For Major Tax Cut

NY Gov. Andrew Cuomo proposes eliminating corporate income tax for upstate NY manufacturers.
New York -

Manufacturers in upstate New York are buzzing about Governor Andrew Cuomo's idea to get rid of all corporate income taxes for manufacturing companies in the area.

If turned into law, this could mean relief for an industry that struggles in that area.

It's been a tough couple years here at Cedar Knoll Log Homes in Plattsburgh.

President of Cedar Knoll Log Homes Ron Marx said, "When you have a loss of two thirds of a business, you have a consequential loss of some people, you buy less, you employ less. It hasn't been a big secret, the last few years have been pretty hard on everybody."

Ron Marx's story is part of trend in upstate New York where, Governor Andrew Cuomo says, manufacturing is struggling.

Corporate income tax rates for manufacturers currently sit at 5.9%. But in his State of the State Address, the Governor suggested reducing that by a lot.

"We need manufacturing jobs in upstate New York and let's cut the corporate tax rate in upstate New York to zero in all of upstate New York,” announced Governor Cuomo.

For business owners like Marx, eliminating the corporate tax could free up money to be used elsewhere.

"Anything that would ease the expense structure would be greatly appreciated,” said Marx.

And North Country Chamber of Commerce President Garry Douglas says  zero corporate income taxes could attract business from all over.

“This is going to be a very aggressive set of incentives for investors, and that means for our area in particular, companies out of Quebec can take a look at New York, as a place to do manufacturing,” said Douglas.

This was just part of Cuomo's 2 billion dollar tax cut proposal, in a state that is typically referred to as having one of the highest tax rates in the country.

 


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