Tax plan could help upstate at city's expense
November 19, 2013

Heidi Learner

A Cuomo administration tax panel's proposal to charge sales tax on clothing and footwear under $110 would punish New York City shoppers, while the tax break offered to offset it would do little for city residents because it excludes renters, critics say.

The sales tax expansion, which would also include digital products like iTunes, would generate roughly $800 million annually, but seems almost certain to come at the expense of the poor—the very folks the commission is claiming to help. And the panel is calling for half of that revenue to go toward lowering taxes on low-income households, but primarily those who are homeowners. The vast majority of the city's poor are renters.

"That idea is likely to benefit many more residents outside of New York City than inside," said Heidi Learner, chief economist at Studley, referring to the paucity of low income homeowners in the city relative to upstate.

Tax plan could help upstate at city's expense

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