January 12, 2012
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New York’s corporate tax structure is looking a lot like Swiss cheese these days. Unfortunately the holes are getting bigger.
In fact, general business corporations have gone from carrying 9.6 percent of New York State’s tax load in the 1970s to a piddling 4.3 percent last year. That’s why we’ve joined with our allies to bring fairness and transparency to our state’s corporate tax system:
1) Make real estate partnerships pay what they owe. (Click image to enlarge.) 
Why should janitors pay taxes on every penny of their wages, while some building owners avoid taxes by hiding income? One estimate shows New York could collect over $5 billion in back taxes, penalties and interest if we cracked down on unreported real estate partnership gains.
2) Restore fair tax rates on multistate corporations. In recent decades, New York has widened tax loopholes for big businesses and slashed the “corporate alternative minimum tax.” We need to level the playing field for small businesses by making multistate corporations pay their fair share.
3) Stop special treatment for out-of-state hedge fund managers. Out-of-state graphic designers, longshoremen and preschool teachers pay taxes on their New York State income. Why shouldn’t hedge fund managers? It’s time to eliminate this special giveaway to these very high earners.
4) Eliminate tax exemptions on the profits of private equity and hedge fund partners. This “carried interest exemption” robs New York City of $200 million in annual revenue. Let’s take it back so that all businesses pay their fair share.
5) Tax all corporate profits made in New York. Never heard of untaxed “nowhere income?” Multistate corporations like Goldman Sachs and Verizon have. New York can follow in the footsteps of 28 states like California and Texas and enact a law to help end this scheme.
6) Tell the 99 percent what’s up. Require public disclosure of corporate tax payments for all publicly traded companies. That’s the only way we’ll know which corporations are paying their taxes and which aren’t.
For more information on these and other tax reform proposals, check out our report, co-authored with the Fiscal Policy Institute, New York Has the Ways and Means: How and Why Wall Street Should Give Back to Main Street.
