TAX AND SAVE

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FYI: A City Project-coordinated coalition of budget watchdog, social service and advocacy groups, dubbed the Budget for a Livable New York City Coalition, is promoting a set of revenue generating and cost-saving measures that it says would prevent deep service cuts. Some of the ideas have already gotten a lot of play: stop wasting money on stuff like $3,000 monthly payments for emergency housing; make it easier for people to sign up for food aid, and thus take better advantage of federal food stamp funds; and reinstate a stock transfer tax, to name a few. But the coalition also pointed to a business tax structure that cuts taxes by half for some of the city’s largest companies. As the mayor’s budget notes, large businesses are increasingly eschewing incorporation and setting themselves up as limited liability partnerships, such as Bloomberg LP. Partnerships pay a flat rate of four percent of taxable income; corporations pay almost nine percent. The coalition argues that equalizing the two rates will generate $881 million. [3/5/03]