After the recent state budget adapted codes to work against federal tax policy, John DeFrancisco is the best gubernatorial candidate to relieve economic burdens for working-class New Yorkers.

Although DeFrancisco is hurt by widespread GOP support of Marc Malorino — his chief rival in the May nominating convention — voters should consider DeFrancisco’s vow to cut taxes, his previous positions on the Syracuse City School District Board of Education and city council and his 40-year undefeated record in political races.

Malorino received the New York Republicans’ nomination for the November gubernatorial elections, which is based on a weighted system that takes into account GOP committee members’ votes rather than a primary election. That lack of public input into the Republican nomination demands we look for ourselves at what DeFrancisco can do for New York’s economy. DeFrancisco is intent on cutting taxes, and his track record proves it.

The $168.3 billion budget passed by state lawmakers at the end of March includes changes to the tax codes issued “to help ease the pain of the new federal tax code for homeowners expecting to see their taxes go up,” according to CBS New York. This is because “the new federal law caps a deduction for state and local taxes that is especially popular in high-tax states like New York.” That cap is $10,000, according to The Washington Post.

One key change in the tax code is that New York will allow companies to pay a payroll tax instead of employees’ income taxes. The payroll change, like others Gov. Andrew Cuomo wrote into the budget, are meant to mitigate the effects of the federal Tax Cuts and Jobs Act of 2017. But they’re only Cuomo’s schemes to compensate for local income and property taxes that, according to Cuomo’s office, were raised 20-25 percent across the state by the act.

Cuomo’s payroll tax will likely repel startups in Syracuse. Employers have to impose a payroll on employees, which could take effect in one of two ways. The first way of paying that tax could be through deductions from an employee’s wages. The second is through taxes paid by the employer based on the employee’s wages. These charges usually cover the employer’s funding of the Social Security system, Medicare, and other insurance programs.

Paying more taxes for employing a worker is an expense businesses want to avoid. The payroll tax in New York state will also affect employees’ wages because the employers may pay workers less due to the payroll tax expense increase.

“An increased payroll tax poses a threat to potential business developments downtown, incentivizing firms to leave New York state.” said Jan Ivar Ondrich, a professor of economics in Syracuse University’s Maxwell School of Citizenship and Public Affairs.

The progress made through the federal tax policy may not see tangible solutions under Cuomo’s state plan, Ondrich added.

“While the federal corporate tax cuts are expected to incentivize businesses to make capital investments and create more jobs, New Yorkers don’t see the benefits of the new tax reform,” Ondrich said.

The former federal corporate tax rate of 35 percent was a burden on businesses, largely contributing to the relocation of U.S. jobs overseas. Fortunately, the recently enacted federal tax plan cut the tax rate down to 21 percent, pushing for businesses to make U.S.-based capital investments.

Relieved from the tax burden, businesses will likely increase wages and create jobs directly and through buying more equipment, investing in new technology and expanding domestic operations.

It’s for these reasons that Syracuse businesses need DeFrancisco at the wheel. The city needs a bolstered economy, and the future would be more than hopeful if DeFrancisco was elected. The city’s downtown region already boasts the possibility of a more prosperous future with urban development pioneer Ben Walsh in City Hall.

The federal tax plan should raise hopes for more startups in Syracuse, despite Cuomo’s commitment to curtail the federal tax plan’s effort. If cities in upstate New York want to see tangible economic solutions, New Yorkers should consider DeFrancisco’s tax policy efforts when they enter the voting booths in November.

Joshua Q. Nelson is a senior political science major. His column appears biweekly. He can be reached at jqnelson@syr.edu and followed on Twitter @joshqnelson.

Published on April 10, 2018 at 8:26 pm