NY State Losing $3 Billion in Tax Breaks – Legislator’s Concerns
New York State is facing a staggering loss of $3 billion due to various tax breaks and exemptions, according to a new report by Democratic state Sen. Andrew Gounardes. These exemptions, ranging from sales tax waivers on gold bars to deductions for charitable donations, are coming under scrutiny for their impact on the state’s revenue.
Questionable and Absurd Tax Breaks
The report highlights the arbitrary nature of these tax breaks, with Gounardes calling them “questionable, arbitrary, and downright absurd.” For example, the state lost $601 million from an exemption on sales of metal bullion over $1,000, including gold bars and coins. These exemptions are raising concerns over their fairness to all income groups.
Impact on State Budget
The loss of revenue from these tax breaks comes at a crucial time, with Gov. Kathy Hochul proposing a record $252 billion budget. Gounardes emphasizes the need to reevaluate these tax breaks, especially those benefiting the ultra-wealthy at the expense of middle-class and lower-income residents.
Expert Analysis on Tax Exemptions
Finance experts warn that the most significant tax breaks in New York’s tax law may not be the most attention-grabbing ones. Deductions for charitable donations and mortgage interest, for example, cost the state hundreds of millions each year. These exemptions can disproportionately benefit the wealthiest taxpayers, creating inequities in the tax system.
Push for Reform
Despite the challenges in addressing long-standing tax breaks, there is a growing need for revenue to fund essential services like the MTA. Gounardes advocates for redirecting the $3 billion in tax breaks towards initiatives like the Working Families Tax Credit, which could support families in need of financial assistance.
In conclusion, the debate over New York’s tax breaks highlights the complexities of balancing economic growth with revenue generation. As legislators consider the impact of these exemptions on the state budget, the focus remains on ensuring fairness and sustainability in the tax system for all residents.
