Tuesday, November 29, 2016
The Congress needs to remove all tax benefits for Hollywood and the music industry so they can reach an economically sustainable level. The States should follow.
Gov. Cuomo delivered a sour note to the music and digital gaming industry Tuesday, vetoing legislation that would have provided millions of dollars in tax breaks to companies in both sectors doing business in New York.
The tax bill would have provided firms located in the city a 25 percent tax credit on production costs.
Businesses upstate would have gotten a 35 percent credit.
In his veto message, Cuomo said the Legislature was attempting to create two new tax credit programs totaling $50 million a year without funding to cover the costs.
He said the issue should be addressed as part of budget negotiations next year.
Some budget watchdogs argue that specific industries shouldn’t be getting special tax breaks, calling it corporate welfare.