Senate Leadership
March 28, 2006
Williams Says Governor's Change on Car Tax Issue Shows One of Many Flaws in Plan
Middle class income taxes still increase, local property taxes still rise and wealthiest see the most benefit
State Senate President Donald E. Williams, Jr. (D-Brooklyn) said Governor Rell's movement on her proposal to eliminate property taxes on personal automobiles and trucks shows there are many flaws in the plan-and the latest development addresses just one of them.
"The governor's original plan to eliminate the car tax was paid for in large part by an increase in the income tax on middle- and lower-income residents, including many seniors," Sen. Williams. "Today, she offered not to raise taxes on seniors to pay for her plan. That's not much comfort."
Sen. Williams added that there are many other problems with her plan, even as amended.
- Cities and towns are still in jeopardy of seeing substantial property tax increases made necessary by the lack of revenue from the tax on cars. The governor has no plan to fully reimburse localities after the first year.
- The wealthiest of the state still stand to gain the most.
- The new change in the plan leaves the state with at least a $660,000 deficit a year from now.
"The governor's movement on the issue shows the administration knows the plan is seriously flawed," Sen. Williams said. "When her plan means income tax increases for the middle class, lost revenue to cities and towns, and the biggest beneficiary of the plan are multimillionaires, it's a problem."
A New York Times report this past Sunday detailed the owners of multitudes of luxury cars would benefit from the Rell plan. The top beneficiary in the state would be fashion designer Tommy Hilfiger, who owns 14 cars that would become tax exempt, including one valued as more than $1 million.
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Senator Williams’ Larry Cook |
Listing of Leadership’s recent press releases. |
Senator Looney’s Larry Cook |
