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For Immediate Release: August 27th, 2004 Contact: Brad Usher (c) 347-693-4640 (w) 212.490.9535 (f)
212.490.2151 ***PRESS RELEASE*** State Senator Liz Krueger
Blasts Broken Promise on Clothing
Sales Tax Repeal New York, NY – State Senator Liz Krueger (D-Manhattan) stated that one of the major flaws in this years
budget was the failure of the legislature and the governor to keep their
promise to end the sales tax on clothing items under $110. “The failure to eliminate the clothing
sales tax was one key reason I voted against the budget,” said Senator
Krueger.
“This regressive tax was supposed to be phased out on June 30,
2004. It has a disproportionate
impact on middle class and needy New Yorkers, as well as small businesses.”
When Krueger spoke against the clothing sales tax
on the Senate floor, she noted that the legislature was keeping this tax
while cutting taxes on wealthy New Yorkers.
“We did decide to follow through on our commitment to wealthier New
Yorkers when we had scheduled a personal income tax reduction for people
earning $150,000 to $500,000 a year, and that we did make good on,” said Senator
Krueger. “So we gave wealthy New Yorkers the tax cut we told them we
would do from last years budget, and we have not given lower-income and
working New Yorkers the tax cut we promised them.” The sales tax on clothing was reinstated in 2003 as one of the
measures to close what was then an
$11 billion deficit, with the understanding that it, like increased
income taxes on wealthy New Yorkers, would be phased out in 2004. Krueger noted that the Governor and legislative leadership
were now advertising “tax free weeks,” including one running from August 31st
to September 6th, where the tax on clothing under $110 is
suspended. “It’s great that we have
these tax free weeks,” said Senator Krueger, “but that hardly makes up
for the fact that the state had promised to eliminate the tax
altogether. I am amazed by the
chutzpah of our state leaders, who take credit for three tax free weeks while
neglecting to mention that they have deprived New Yorkers of another 49 weeks
of tax free shopping.” Krueger also pointed to the negative effect this tax has
on small businesses in New York City.
“Small businesses are the bedrock of the economic strength of New York
City, and the clothing tax hits them especially hard. They lose business to out of state
companies and internet sales, and do not have the flexibility of larger
chains to absorb the impact of this tax,” said Senator Krueger. “I call on the legislature and the Governor to act to
fulfill their original promise, and repeal the sales tax on clothing. There is still time to act this year, and
doing so would create a more equitable tax structure and a more favorable
business climate in the State.” -30- |
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