As noted, the main reason I'm not a fan of TFNY is that it codifies a class system: the 'have-to' class of New Yorkers that have to pay income tax, and the 'don't-have-to' class that, simply by the stroke of a pen, don't have to. They could be working in buildings right next door to each other, making exactly the same salary, doing exactly the same thing, living right next door to each other, going to the same churches and restaurants and grocery stores, their kids attending the same schools -- but for 10 years they are different in the eyes of the government.
The bottom line is, this program creates not only more corporate welfare, but more personal welfare. And that's wrong.
The other reason why I'm opposed to this is that frankly Albany has a horrible track record of creating corporate welfare programs that actually benefit anyone, other than themselves. We either get promises on which businesses under-deliver (or never deliver), or we get lawyerly fun and games.
Probably the most famous of these programs was the Empire Zone debacle. This was a lawyer's dream, a program where pretty much all you had to do was change the name of an existing company and get a fistful of tax credits as a result. You didn't have to create a single new job; you didn't have to build a store or office building that would have put other people to work doing something productive, and where a customer could go to and spend money purchasing goods or services not previously available.
It was literally as easy as changing your shirt or underwear (more apt, I think, since for the most part it was a load of crap). That's why, in the Tax-Free NY proposal there are supposed to be precautions so that 'shirt-changers' don't pollute the program.
For purposes of illustration, I did some really easy research and found a database of businesses, the jobs they created, and their tax credits for 2010. Here's the intro to the data:
More than 3,000 businesses were expected to claim Empire Zone tax breaks on their 2010 taxes. The recently released information comes from records the companies filed with state economic development officials at the end of 2011. Search our database to find the companies' tax credits, investments and jobs.Here are the Top 25 tax credit recipients for Onondaga County and the City of Syracuse.
Company Name (Onondaga County)
|
Jobs
|
Tax Credit
|
Credit/job
|
Buffalo- Main Street LLC
|
1
|
$639,537
|
$639,537
|
DestiNY USA Holdings LLC
|
3
|
$440,768
|
$146,923
|
Syracuse Property Partners LLC
|
2
|
$288,335
|
$144,168
|
COR Route 5 Company LLC
|
4
|
$575,029
|
$143,757
|
Peregrine International LLC
|
1
|
$100,290
|
$100,290
|
Falso Holding Co. LLC
|
1
|
$82,362
|
$82,362
|
RLB Development LLC
|
9
|
$692,616
|
$76,957
|
BAR Advertising Co. No. 2 LP
|
8
|
$555,832
|
$69,479
|
JGB Factoring GMBH LLC
|
2
|
$131,740
|
$65,870
|
Performance Drive LLC
|
1
|
$59,565
|
$59,565
|
6580 Weighlock Drive Company LLC
|
1
|
$49,666
|
$49,666
|
Roth Global Plastics Inc.
|
1
|
$45,069
|
$45,069
|
344 South Warren Street Corporation
|
1
|
$34,586
|
$34,586
|
T-L Marketplace LLC
|
2
|
$61,699
|
$30,850
|
Basin Associates LLC
|
3
|
$67,792
|
$22,597
|
SRCTec Inc.
|
219
|
$4,808,487
|
$21,957
|
GALLAGHER ELECTRIC PARK LP
|
1
|
$19,418
|
$19,418
|
Reagan Realty LLC d/b/a MNR Consulting
|
3
|
$52,359
|
$17,453
|
The Empire Crane Company LLC
|
16
|
$264,511
|
$16,532
|
Syracuse Airport Suites LLC
|
14
|
$173,330
|
$12,381
|
East Taft Distribution LLC
|
1
|
$11,891
|
$11,891
|
Evening Star LLC
|
3
|
$30,466
|
$10,155
|
Kevidco LLC
|
10
|
$84,597
|
$8,460
|
Roth Global Plastics Inc.
|
2
|
$16,026
|
$8,013
|
Seventh Brook Properties LLC d/b/a Stickley
|
18
|
$130,879
|
$7,271
|
AVERAGE
|
13
|
$376,674
|
$73,808
|
Company
Name (City of Syracuse)
|
Jobs
|
Tax
Credit
|
Credit/job
|
CNYX Properties Inc.
|
1
|
$586,085
|
$586,085
|
One Park Place LLC
|
2
|
$656,245
|
$328,123
|
250 South Clinton LLC
|
3
|
$926,672
|
$308,891
|
XCNY Properties Inc.
|
2
|
$609,917
|
$304,959
|
Deys Plaza LLC
|
1
|
$278,763
|
$278,763
|
Carousel Center Company LP
|
45
|
$9,254,370
|
$205,653
|
Maltbie/Division LLC
|
1
|
$157,465
|
$157,465
|
300 Washington Street LLC
|
1
|
$153,272
|
$153,272
|
DestiNY USA Holdings LLC
|
3
|
$440,768
|
$146,923
|
Autocom Leasing Corp.
|
1
|
$141,347
|
$141,347
|
Pomcoplus LLC
|
3
|
$392,681
|
$130,894
|
Atrium Associates LLC
|
3
|
$311,278
|
$103,759
|
Clinton Street Soma Project LLC
|
1
|
$94,227
|
$94,227
|
Lakefront Lofts LLC
|
1
|
$92,911
|
$92,911
|
224 Harrison Associates LLC
|
2
|
$164,985
|
$82,493
|
Vinlandic LLC
|
1
|
$81,898
|
$81,898
|
Trespasz & Marquardt LLP
|
1
|
$77,483
|
$77,483
|
Sycamore Holdings LLC
|
1
|
$77,003
|
$77,003
|
Boukair Realty LLC
|
1
|
$74,110
|
$74,110
|
RHS Holdings LLC
|
1
|
$72,798
|
$72,798
|
Berkley 518 Office LLC
|
1
|
$72,768
|
$72,768
|
Sewer Sciences Inc.
|
7
|
$492,695
|
$70,385
|
Onondaga Commons LLC
|
1
|
$68,158
|
$68,158
|
One Clinton Square Associates LLC
|
1
|
$67,735
|
$67,735
|
Franklin Lofts LLC
|
2
|
$129,250
|
$64,625
|
AVERAGE
|
3.5
|
$618,995
|
$153,709
|
Seem a little suspicious, all these LLCs and LLPs and Associates and Partnerships and street addresses out there creating jobs and getting those healthy tax credits, doesn't it?
And doesn't it seem like it would be pretty easy for another bunch of LLCs and LLPs and Associates and Partnerships and street addresses to find a way to establish "a relationship to the academic mission of the university" and come up with another whole dresser drawer-full of underwear and do it all over again, doesn't it?
One more thing: a while back, David Patterson (our Accidental Governor) tried to take away ill-gotten gains (in the form of prior-year credits) from Empire Zone abusers. The shirt-changers got mad, sued, and recently won their case against us, the real tax payers of New York. Additional lawsuits are pending.
Don't fall for it, again, New York.
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