New York Governor's Proposed Budget Bill Includes Some Significant Tax Increases

In a theme that has recurred over past budget cycles, the recently released 250-page New York State Budget Bill does not officially raise taxes. Instead, it "Closes Loopholes." Unfortunately, it appears that in actual application, "Closing Loopholes" proves to be a loophole in itself, allowing the state to increase taxes without admitting that the proposals are, in fact, raising taxes. Provisions to expand nexus for the sales tax, corporate income taxes and personal income tax; to decouple from Internal Revenue Code Section 199; and to remove the cap on the alternative Article 9-A tax on capital, for example, are not responses to abuse. They represent instead simply decisions to tax more people, on more. The Bill's proposed tax increases may be attributable to the current strained economic situation.