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New budget proposal includes luxury tax breaks

Jim Hoffer reporting
March 27, 2014 3:38:17 PM PDT
It's a foot high and more than a thousand pages, the new state budget proposed by the Republican-controlled Senate. Buried deep inside the $142 Billion spending plan, Eyewitness News found big tax breaks for the wealthiest New Yorkers.

Among them was an "exemption for the sale of private aircraft from sales tax" which at 4% could save the buyer tens of thousands of dollars.

The budget also calls for "eliminating the sales tax on limousines and black cars", a nice break for stock brokers and bankers.

And then there's the proposal to adjust (or lower) the sales tax for a company or individual who purchases and registers a boating vessel in New York.

"We think the budget should reflect the priorities of all the people of New York State," said Ron Deutsch, of New Yorkers for Fiscal Fairness.

The head of New Yorkers for Fiscal Fairness calls the budget, classic trickle down. While proposing tax cuts for the purchase of yachts and jets, it "denies a personal income tax credit" for renters.

"Need to see more of a trickle up approach, when you give money to people at the lower end of the spectrum through tax cuts and rent benefits that help them live on a daily basis that's going to stimulate the economy," Deutsch said.

Eyewitness News caught up with the Senator sponsoring the aircraft sales tax exemption who happens to have a Cessna airplane service center in his district.

"It creates jobs, it creates revenues," said Senator William Larkin, (R) Cornwall-on-Hudson.

Senator Larkin says his tax cut on jet sales means owners will keep their planes in New York, rather than Connecticut and New Jersey which already offers tax breaks.

"They get the savings, the rich guy?" Eyewitness News Investigative Reporter Jim Hoffer asked.

"Yes, but if we don't do this anymore why would you go to New York," Sen. Larkin said.

"The rich guy will go elsewhere?" Hoffer said.

"That's right!" Sen. Larkin said.

A Democratic senator from Queens says there's more effective ways to create jobs while also giving a break to those who need it.

"Anywhere we put our money will create jobs. The point is to give our assistance to those who need the most, so if we were able to give renters credit that Senate Democrats advocate the people who rent in New York City will take that extra money and spend in stores and that will create jobs," said State Sen. Michael Gianaris, (D) Queens.

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