Cuomo should consider utility tax elimination

Bipartisan efforts for change are not common in today’s American political arena. But New York Democrats and Republicans are aligning their positions to jointly support removing the proposed extension of the utility tax surcharge from the 2013-14 budget.

Gov. Andrew Cuomo should pay attention to this dual-party argument, as it is clear a common contention is shared.

The surcharge was originally passed as a temporary action by democratic legislators in 2009. The governor’s proposed budget includes extending the 18-a surcharge for an additional five years, instead of allowing the tax to expire next year. This is a point of debate for current lawmakers who need to pass the state’s budget by April 1.

New Yorkers face some of the highest utility costs in the nation already. The added tax places a burden on residents, including Syracuse University students living off campus and businesses in the Syracuse area.

Assemblyman Al Stirpe (D-Cicero) states the surcharge will not improve the state’s utility delivery system. Cuomo wants to use the tax as a tool for balancing his proposed budget, but it is unclear where exactly the funds will go.

By not allowing the surcharge to persist, state legislators will save New York residences $55 per year, small businesses $540 per year and large businesses about $30,000 per year. Though the savings are not especially large, particularly for residences, the state’s people and businesses would benefit.

For college students, residences are run on typically tight budgets. These potential additional savings could be put toward other bills and take a strain off of other college-oriented expenses.

Removing the proposed extension from the budget would aid local businesses even more than residential consumers. Not having to pay the additional tax could free up funding the businesses could use to create more jobs, which is a necessary measure for the state’s recovering economy.

The growing bipartisan support for the extension’s elimination should be highly considered by the governor. By cutting this tax, businesses may become more productive and could rejuvenate the economy further.

Today, when members of the two major parties come together, it is clear their arguments are worth considering. New York legislators should continue applying these bipartisan efforts to the rest of the budget debates.