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George Pataki on Tax Reform
Republican NY Governor
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Eliminate the marriage penalty & cut taxes
First, let's strengthen families and create jobs by lowering the burden taxes place on New Yorkers. We've proven time and again how tax cuts create the financial freedom that yields even greater opportunities for New York's citizens.
If our goal is to position New York State to thrive in the face of evolving global competition, our fight to cut taxes must continue.
This year, I will send to you a pro-family tax cut program--a series of measures that will reduce the tax burden on working families, stimulate the economy and foster the competitiveness that will attract even more investment and jobs to New York.
Let's completely eliminate the marriage penalty to encourage rather than penalize marriage in New York State.
Source: State of the State address to 2006 New York Legislature
, Jan 4, 2006
Phase out estate and gift taxes
[In his first term, Pataki] called for a three-year phaseout of estate and gift taxes, which send many affluent New Yorkers to Florida; he pushed his STAR school tax relief plan to rebate taxes and give more aid to schools.
He stayed aloof from Senate President Joseph Bruno’s crusade to end state-wide rent controls, brokering a compromise which left controls intact in Manhattan.
Source: National Journal, the Almanac of American Politics
, Jul 6, 2000
No national sales tax or VAT.
Pataki adopted the National Governors Association policy:
State tax policy is closely linked to federal policy. 36 states currently use either federal income or federal tax liability as the state tax base for personal income taxes. It is critical that Congress and the administration do not enact tax reform in a vacuum, but in consultation and in partnership with the nation’s Governors. - National Sales or Value-Added Tax The nation’s Governors oppose a national sales or transactional value-added tax. Such taxes would intrude into a tax area that has traditionally been reserved for and relied on by state and local governments. If enacted, either of these taxes would seriously threaten the ability of state and local governments to maintain their tax base.
- Current Income Tax If Congress decides to reform the current tax system, they should reduce the complexity of current income taxes; increase incentives to work, save, and invest; and increase efficiency and fairness. As part of any reform of the
current income tax, the nation’s Governors would oppose any modification to the deductibility of state income taxes, property taxes, and the interest on state and local bonds.
- Transition If major tax reform is enacted, it should not be implemented for at least three years, to give states ample time to adjust their own tax systems.
- Information Needs of the StatesThe ability of states to tax various revenue sources depends to a large extent on information that only the federal government can collect. This is becoming much more important given the complexity of both the international and domestic economies in tracing where goods and income are generated. It is critical that the federal government separate tax reform per se from the information that is collected from individuals, businesses, and corporations with respect to income generated. The data collection role of the federal government must be developed in partnership with state and local governments.
Source: NGA Executive Committee Policy Statement EC-9 00-NGA1 on Feb 15, 2000
Let states independently determine estate taxes.
Pataki adopted a letter to Congressional leaders from 37 Governors:
We are writing to request equal treatment between states and the federal government on estate tax changes. Regardless of one’s view about phasing out the federal estate tax, the Governors are absolutely united in opposing any action that would discriminate against states in the phase-out of the state and federal estate taxes. This issue needs to be addressed before the Senate goes to conference with the House.
Governors believe that the ability of states to independently determine their own tax revenue policy is a basic tenet of federalism. Moreover, no federal tax bill should be enacted without close consultation with the states.
At the very least, there must be equity in the treatment of the state death tax credit in the tax bill the Congress considers with the proposed phase-out of the federal estate tax. Governors oppose provisions that impose disproportionate impacts on state revenue systems. The changes proposed by the Senate would have abrupt, significant adverse impacts on state revenues at a particularly onerous time for many states. The potential impact on states would begin next year and have a potential impact of between $50 and $100 billion over the next ten years.
We urge the leaders to respect those rights and to restore fairness.
Source: National Governor's Association letter to Congress 01-NGA19 on May 23, 2001
Implement socially fair, broad-based tax cuts.
Pataki adopted the Republican Main Street Partnership issue stance:
Not only has the Republican-led Congress achieved a balanced budget for the first time since 1969, but it has also created a budget surplus -- a feat not previously even imaginable. It is currently projected that the Fiscal Year 1999 budget surplus will be along the order of some $80 billion, of which $66 billion is earmarked for Social Security. This envious state of affairs would seem to indicate that equitable, far-reaching tax reductions may be in order -- not as an ideological or political strategy, but as a primary element of an economic growth policy and a legitimate tool for holding down unnecessary government growth in times of surplus.
The United States is enjoying steady economic prosperity thanks in no small measure to prudent fiscal policies implemented by the Republican-led Congress. However, we must look not only at the positive side of the economy but also at the problems the economy faces -- at the present time and into the twenty-first century. Limiting government spending (i.e., spending caps) is a good beginning to address some difficulties. In addition, current and future Congresses should maintain a balanced federal budget, pay down the national debt (which will help protect Social Security for current and future generations), redefine the federal government's role in the society and, finally, think about fair tax reductions for the American people and the businesses that drive our economy. [We need] an evaluation of implementing tax cuts based on their social fairness.
Source: Republican Main St. Partnership Issue Paper: Fiscal Policy 98-RMSP6 on Sep 9, 1998
Page last updated: Jan 19, 2015
