Here is another article about things going on around Rochester.
New York is widely regarded as the worst state in which to start a business, due to tax constraints, but a recent proposal from Gov. Cuomo could make things much easier for budding entrepreneurs.
According to the Rochester Business Journal, a primary objective in Gov. Cuomo’s agenda for New York in 2016 is to cut taxes for small businesses. He also proposed several other investments and initiatives, all with the goal of reinvigorating the state’s fledgling economy.
“We are going to make critical investments in infrastructure, cut taxes for small businesses, and invest in the regional approach to economic development that has made a difference across upstate,” Gov. Cuomo said. “Together, we are going to continue moving this state forward.”
Small businesses account for 43% of all private-sector jobs in New York, and Gov. Cuomo believes that their success is critical for the state’s economy to thrive. He added that his tax-relief plan would save small businesses approximately $298 million per year, benefiting over 55,000 firms in the Finger Lakes region alone.
For small business corporations with fewer than 100 employees, the tax rate would drop from 6.5% to 4%. Small businesses that are organized as partnerships, S corporations, and LLCs would be able to exclude up to 15% of their business income from personal income taxes.
Approximately 76% of Americans are living paycheck-to-paycheck, and the same can be said of many small businesses in New York that are forced to reinvest profits into their company due to a heavy tax burden.
According to Syracuse.com, a Tax Foundation report released this week found that New York taxpayers carry the dubious distinction of paying the highest rates in the country.
New Yorkers paid an average of $6,993 in combined taxes during 2012, the most recent fiscal year studied by the Tax Foundation. That same year, the average tax burden was just $4,420 for other states.
Gov. Cuomo’s proposal would certainly modify these averages for the next Tax Foundation report, but New York business owners shouldn’t get their hopes up until the plan is officially enacted.