ROOM 332 CAPITOL ALBANY, NY 12247 (518) 455-3171 FAX (518) 426-6950 55 FRONT STREET ROCKVILLE CENTRE, NY 11570 (516) 766-8383 FAX (516) 766-8011 E-MAIL: SKELOS@NYSENATE.GOV

April 9, 2012 Senator John Sampson Minority Leader Room 315 Capitol Albany, N.Y. 12247 Dear Senator Sampson, I am in receipt of your letter of April 3, 2012 regarding proposed legislation to increase the state's minimum wage. Your letter disregards concerns raised in a number of studies, as well as the business community, that this would drive up costs for businesses and could cause significant job losses at a time when we are working so hard to create jobs in New York. Several studies have concluded that increasing the minimum wage in New York would place higher costs on businesses that could potentially be passed along to consumers. Analysis indicates that a higher minimum wage could cost businesses as much as $2,800 per year, per fulltime employee. When you include part-time employees, the total impact on New York businesses is nearly $350 million. Another study found that the 2004 minimum wage hike reduced employment by almost 22 percent, especially among younger, less educated individuals. Organizations that represent the job creators, including the Business Council, NFm, the Farm Bureau, Unshackle Upstate and others have also raised red flags about raising the minimum wage and the possibility that it could hurt businesses and cost jobs. Furthermore, Senator Sampson, I find your concern for the employment prospects of New Yorkers to be sudden and disingenuous. When, as leader of the Senate during 2009 and 2010, you had the opportunity to help families make ends meet and help businesses create jobs, you went on a taxing and spending binge the likes of which this state has never seen.


You approved $14 billion in new and increased taxes and fees in just two years. You and your colleagues in the Senate Democrat conference took away property tax rebates, raised income taxes, boosted utility bills and increased registration fees for every type of vehicle from autos to ATV s. You imposed the disastrous MT A payroll tax on businesses, schools, libraries and more. You hiked taxes and fees on hospitals, health insurance, hunting and fishing licenses, clothing, cigarettes and cigars, state park cabins, hotels, tires, home care and beverages. I have attached the full list of tax and fee increases enacted during your two years in the Majority. Senate Republicans, working with Governor Cuomo, are damage you caused to businesses in New York State and replace those you drove away. We have our state headed must continue our efforts to strengthen our economy and finally making progress undoing the attracting new businesses and jobs to in a new, positive direction and we create jobs.

E/l. ~-SENATOR DEAN SKELOS Majority Leader

The attached table outlines 125 distinct taxes and fees totaling S 14 billion that were enacted in 2009 and 2010 by the Democrat Maiority in the New York State Senate. The table indudes the following: • • $10.2 billion in new/increased taxes and fees enacted in 2009. $2.2 billion in new/increased taxes and fees en oded in 2010 -- threatening 250,800 iobs. Also continues the elimination of $1.6 billion in property tax relief. The tax and fee increases include: ~ Eliminating Property Tax Relief checks of $3 billion averaging $900 per homeowner ~ A new iob-killing payroll tax of $1.5 billion in the MTAregion -- threatening 171,000 iobs ~ Increasing utility bills by $600 million ~ ~ Increasing DMVI Motor Vehicle registration and other fees by $141 million Raising personal income taxes by over $4 billion

(List of tax increases attached)
~ New York State Senate Republican Conference



Two Years of Taxes and Fees By New York State Democrat (millions Enacted Tax Tax Tax Tax [ax Tax Tax Tax Tax Tax Tax Tax Tax Tax ifax Tax Tax Tax Tax Tax iTax Tax Tax Tax 1 2 3 4 of dollars) in 2009


6 7 8 9 10 11, 12 13~ 14

li.e_l[s.poal"llilcortie Tax Increase Eliminate STAR Property Tax Rebate Checks MTrA R~gio@ Payroil Tax 18-A Utility Tax Increase NY Power AuthQ!ill\l_Swe~p (rJ~nacte~d iEl.llaap) Tax on Family_ and Individual Health Insurance Policies (Enacted In DRP) State and City University liuitioR Tax MTA Registration Surcharge (Enacted In IDRP)

$3_;94_8.Q $1,440.8 $ll,530J1 $557.0 $476.0 $240.0 $220.3 $193.0 $1180.0 $158.0 $1140.0. $126.0 $1120.0 $115.0

Shift Healthy NY IDirect Pay Stop I..oss to Insurance Asse~sment Hospital Assessment (Tax) Limit Itemized De_duction_sfor High Income T~PJ~Y~i'S Hospital Surcharge (Tax) I::lealth lnsurance Tax Enhanced "Bottle Bill" - bottle deposits Tax Increase onjouslnesses lin IEmpire Zones MTA Taxicab Surcharge of 50 cents Increase Surcharge on Auto Insurance Passenger Vehicle Registration Fee Increases - average 2 years


$85.0 $64.5 $62.1 ,

18 19: 20 21 22' 23. 24


IlJJp_oseFee on Non-LJLC RartnerShlR..s Driver License Renewal Increase of 25% (8 Years) MTA Auto Reotal 5% Surcharge Change Tax of Overcapitalized Captive Insurance Corps Impose Sales Tax on Transportation-related' Ac_tiy.i~e_s Commercial Motor Vehicle Registration Fee Increases per 500 Ibs


$33.0 _$26.0: $20.6 $~9.3 $15.0 $'14.2, $14.0 $'14.0

iT"ax 25 Tax Tax Tax Tax Tax Tax Tax Tax Tax Tax Tax Ta* Tax Tax Tax Tax Tax 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

Increase Real Property Transfer Fee MTA License and Learners Permit Surcharge Home Care Asse_s_smelilf1(Tax) Non-Resident Sports Hunting & Fishing License Fees Tax Fee Fee Increases

Increase Beer/wine

Increase Scofflaw Termination

$12.6 $111.4 $10.0 $9.0 $8.5 $8.0

Photo IDocument Motor Velilicle license

Increase Cigar Tax ~p_aljlq Vendor D~finitionJo if:ltemet IDat-CJ)m's Remove Cap on Department Auto Rental Tax Trailer Registration Asbestos Notification Fee Increases Fee Fee of Motor Vehicle Surcharges

$7.9 $~6.5 $6.2 $~6.O: $5.0 (Tax·), $5.0 $4.6

Establish Cigarette and Tobacco Retail Registration . Establish New Marine J;ishililg 'License Increase Pesticide Fees Non-resident


Covered Lives Health Insurance Assessment

Highway Use Tax Fee Increase

Taxes Enacted by New York State Senate Democrats

Tax. Tax ifax Tax Tax Tax Tax Tax Tax Tax Tax ::rax Tax Tax Tax

44 45 46 47 48 49 50 511 52 53 54 55 56 57 58 59' 60 61 62 63, 64 65 66 6:'( 68 69 70 71

. T_a,g

and B_u_s ~gis_tration Fe_eIn(:r:e_~~.e_s R - 1y~ear

$4_.J $4.0 $4.0 $4.0 $3.7 Fee $2.7 $2.7 $2.7 $2 ..§: $2.3

Establish Tax Preparer Fee 1",~r_E!_as_e Certificate of Nee_dFe_e_s Tax In-state use of Out-of-state Vehicles Motor Vehicle Re-Registratior:l Fee


Increase Driver's License Suspension Termination In5'«E!_ase PD~S Fees: GP- for PCI & Industrial _ S Increase Nuclear Power Plant Fee

b_ustom Vehicle Registration Fee In~reaS_E!_s year -2 Parks Golf Fee Increases ID0uble Food Processor ,licensing Repeal Underutilized Fees - Biennial Fee Fee & New General Permit

$2.2' $2.0 $2.0 $1.8 $11.7 $1.5 $1.5 $1.3 $)1.2' $1.0

Increase SPDES Fees: SW Initial Authorization Tax Credits for Businesses

Increase Lifetime Sportsman Hunting & Fishing License fees MiA~ IRe_clamation IFee Motorboat Registration Fee Increases - 3 years Establish Pad Check Fee Establish New Wetlands Permit Fees Parks CamRing Fee increases Insurance Company Boiler Inspection Report Fee Increase ~staplis.11 Horse ~ntrance Fee ~Bacing' IndustrMf Increase Operating Permit Program - per ton fee Establish Promotion ,5xam Fee Parks Cabin Fee Increases .Incr..E!_as_~ Drivtlr's Li~nse R~i_liIstat~_menlFe.e Increase Retail Food Store Licensing Fees }\ir G.QJ;ltamination FE!__8S Fee for Motor Vehicle - MV-278 Certificate (Pre-licensing Par~s_t:mpire Passp-orts Fee Inqreases Parks Marina Fee Increases ~st~blish Security Guard Training School Fee Heavy Vehicle Registration Fee Increases - percent of registration fee 'Ihprease S:_t~tePQII_u~nt Qis_qharg~ Elil')1iAation SYJlt~m (SPIDffi:S~, e~es F Expanded Local Centralized Written Exam Fees Parks Permit Fee lncreases Increase Food Warehouse . Open Competitive Licensing Fees lPee Increase All Terrain VE!_hicl~ -eArv~R~gistration Exam Fee Schedule Course)




Tax Tax

Tax Ta~ Tax Tax Tax Tax Tax Tax Tax Tax

$0.9 $0.9 $0.8 $Q.7 $0.7 $O~ $0.5 $0.4 $0.4 $0.3' $0.3 $Q.3; $0.3 $0.3 $0.3 $0.3 $0.2 $0.2' $0.2 $0.1 $0.1 $0.3 $0.0 $0.0 $0.0

72 13

Tax 74 TCJx_ 75 Tax ifax Tax Tax Tax Tax Tax Tax Tax Ttax Tax ;rax Tax 76

78 79 80 8~ _ 82

Mo~oJcy.qlelr;teg-istrati9JiIFee IncLeases Intransit Permits Registration Fee Increases llncrease Feed T0nlilage Fees Establish Security Guard Instructor Fee Ililcr.eaSJ3 Ed_u~tion Qamp Pee Water Withdrawal Reporting Fee R~_si!'l~nt ~p"o~ HUAtir:'lg & Fishimg ,Ii~@s_efe.e_s iocr;~ase Income Tax Definition of New York Presence

84 85 86 88

- --


Taxes Enacted by New York State Senate Democrats

Tax Tax Tax Tax 1iax

89, 90 91 92 9.3

Gains Tax on Nonresideat Partners Postpone scheduled reduction of DMV search fee from 2010 to 2015 Postpone scheduled reduction of DM'V'Application and Registration fees for dealer or tr:aosP.or:terfr:om 201.0 to 201.6 Postpone the elimination of the DMV Photo Image fee from 2010 to 2015 In_or:_e_as.e iljl License Plate Reissuanes Fe,~ Subtotal - 2009 Enacted Tax and Fee Increases




Tax I

$10,183.8 $1,580.7



Second Year of Eliminated STAR Property Tax Rebate Checks Enacted in 2010

tax Tax Jax Tax Tax Tax

95 96


_~i~allow 5.0'% B_usiOe_s.s Cr:edits Tax Sales Tax on Clothing Suspension Incre_aser6xciSj! Tax on Cjg_arejtes -(.$1.6])!Per P.!ack) Personal Income Tax Charitable Deduction Reduction _NYLC Sl!J\8-l?ers_el!lallnC_9rfle Tax Rate Increase Elimination of Timmothy's Law Small Business Reimbursement Ma_iseCe~i_o [n_CQme Taxable lQr NQn-Re~ident Hedge Fund M~nttgers Make REIT/RIC Captive Provisions Permanent lo_ot:e_as_e lIQ~a~ Products Tax Increase Moist Snuff Tax (impact contained in tobacco products increase) Tax "Li_ttle Cjgar:_s"-~lmp_aGtc_ol'ltai_oe_d tebaece m:_educts ioc_rea_S,e~ iljl State Employee/Retirees Medicare Premiums Increase ~dc,1Back ,Federal Sales fax IIDe_d_u9tiplil Consumer Credit Judgements Fee .collectil)~ S,u_~pJu~ frqm w'Qlikers _COIl1P Insurers Eliminate Sales Tax Vendor Credit ElimiAate STAR Exemption for Higher fn~mes Internet Hotel Tax (Expedia Tax) Eltminate Pnvate La_b.!e Credit Card fRe:tund Change Banks Bad Debt Deduciton Method ifr:_e_at S-CQIiP_ Gains and IlMitallment Incema as TaxablaJQ NQIiIResidents Extends the Waste Tire Management Fee for 3 years Crimminal HistoJ¥ S_ear:chFe_aIncr:ease Index Fee for Property Foreclosures Treat Cell1P-ensatiolJ fQr Past S.e_rvice_ss taxable fer Non R~sigents a Bond Issuance Charge on NYC Housing Development Corp. j_o_ore_ase Re_gistratien Fee for Lawy,ers Define Flow-Through Entities as Taxpayers for QETC and Biofuel Credit Claims Hazardous Waste Generatien Fee Fee Subtotal - Taxes and Fees Proposed GRAND TOTAL Increase Bar Exam Fee for Foreign Educated Individuals ~lectr0_f1j_c ar;Jufactu~iog ~~isJratien M

_$970.0 $330.0 _$210.6 $135.0 $120.0 $50.0 $7l.Q $50.0 $40.0 N/A N/A $30.0 $30~Q $24.4 $24.0 $23.0 $QO.O $20.0 $Jl.8.p, $15,0 $112.0. $7.5 '$_75 $5.2 $5_.Q $3.0 $2.5 $2.0 $2.1 $1.2 $1.0 $2,229.4 $13,993.9

98 99 100 lia~ 1f01 Tax 102 Tax 10,3 Tax 104 iTax 105 Tax 106 10'7 ifa~ Tax 108 "Fax 109 Tax 110 tax 111 Tax 112 Tal_( 11'3 Tax 114 115 rex Tax 116 ~17 Tax Tax 118 Tax 119 Tax 120 Tax 1-21 Tax 122
'fax Tax Tax


123 124 125

Taxes Enacted by New York State Senate Democrats

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