ALBANY, N.Y. (CBSNewYork/AP) — New York Gov. Andrew Cuomo on Sunday called for a 4 percent small-business tax cut and a student loan forgiveness program, the latest in a flurry of proposals as he unveils his 2015 agenda.
The tax cut would lower the rate for small businesses from 6.5 percent to 2.5 percent over a three-year period. When phased-in fully the cut would reduce overall taxes by about $32 million for 42,000 taxpayers.
The new rate, if approved by state lawmakers, would be the lowest paid by small businesses since the tax was imposed in 1917.
“Small businesses are the engine of opportunity and we will do everything we can to ensure they thrive and grow in New York,” Cuomo said in a statement announcing the proposal.
The Democratic governor also proposed the creation of a small-business office to streamline government licensing and permitting and to connect businesses to support programs.
Cuomo has announced several proposals in recent days as he prepares to deliver his State of the State address Wednesday, the same day he’ll unveil his proposed state budget.
Also on Sunday the governor announced a $43 million student loan forgiveness program which, if approved by the Legislature, would help a projected 7,100 graduates. The program would ensure that the first two years of a borrower’s repayments are covered after they graduate.
The benefit would be open to graduates who participate in the federal Pay as You Earn loan repayment program. To be eligible, individuals would have to have attended college in New York state and remained here after graduation and now make less than $50,000.
On Wednesday, Cuomo announced he is proposing a property tax credit that would apply to homeowners whose property tax burden exceeds 6 percent of their income. They also must have annual adjusted householdincomes below $250,000.
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