Select Page

De Blasio’s Commuter Tax Scheme Is Another Burden For NYC Businesses

by | ARTICLES, BLOG, ECONOMY, NEW YORK, POLITICS, TAXES

De Blasio recently announced the implementation of the NYC Commuter Benefits Law, which goes into effect on January 1, 2016. This law “requires for-profit and nonprofit employers with 20 or more full-time employees in New York City to offer commuter benefits. Employers can save by reducing payroll taxes and employees can lower their monthly expenses by using pre-tax income to pay for their commute.”

What De Blasio’s press release doesn’t say is that companies face costs associated with this new tax scheme. It doesn’t discuss the cost of implementation and the use of administrative resources. It doesn’t mention the constant upkeep, such as W2 adjustments or employee changes on and off the plan. All this adds more burden to small businesses.

This NY Commuter Benefits Law encapsulates De Blasio’s continued effort to destroy New York City growth and employment; it worsens the cost of being in business in New York. There is likely no net benefit to the employer for his forced participation.

It continues a longstanding situation where New York City mayors do what they think *is* good, but their schemes are really destructive. For instance, one of the most laughable programs in the world requires landlords in New York City to set up bank accounts for everyone who has a security account with their landlord; there are easily hundreds of thousands of such accounts in the city; virtually every New York City resident loses money, because the tax treatment of this at the state and federal level, so that it is a loss for everyone. It’s utterly ridiculous. For this particular law, however, I’ll give De Blasio the benefit of the doubt that he is just severely incompetent and economically clueless.

The continued assault on small businesses within the city make it harder for the economy to grow. The city needs less, not more, regulations for businesses to prosper.

De Blasio and the Universal Preschool Fallacy

by | ARTICLES, BUSINESS, ECONOMY, GOVERNMENT, NEW YORK, OBAMA, POLITICS

deblasio preschool
The new pre-school plan presented by Mayor de Blasio reveals just how politically disingenuous he really is.

In his effort to push the progressive agenda he put forth during his campaign, de Blasio has vowed to have universal pre-school in New York State to be paid for only by the wealthiest New Yorkers.

Here’s the logical inconsistancy: If universal pre-school is the all-important and necessary step for all children in their educational development (the merits of which is fodder for another article entirely), then the only logical conclusion is that the cost should also be borne by all taxpayers the way K-12 already is — not just a select few. If “everyone” is not willing to pay his or her fair share of this “necessary” project, then maybe that tells us that it should not be done.

This line of thinking clearly echoes the Obama Administration’s sentiment that the rich “pay just a little bit more”, and it is not welcome in New York.

Striking Workers, Striking Policy

by | ECONOMY, NEW YORK

It may not be well known, but in New York, strikers – like the Verizon ones – are able to collect unemployment insurance while striking.It’s about time we expose the audacity of union employees collecting benefits during their time of voluntary unemployment.  It is unconscionable that pro-union policies allow their members to deplete the state unemployment coffers into which hard working employers contribute for their employees. The present job environment is quite disparaging. With 9.2% unemployment and people desperate for work,  unemployment insurance funds are already running at empty. That workers with jobs (like Verizon) are exhausting it further by claiming funds when they have elected to not work is despicable. Viewing this practice in tough economic times like these lets one see how truly outrageous it is. This policy must be reversed.

Crains: Wall Street Bank Bailout

by | ARTICLES, BUSINESS, NEW YORK


How come this bank gets propped up, but others don’t? Crain’s New York has the news here:

Wall Street bails out Carver Federal with fat check

The Harlem bank raises $55 million from an investment group that includes titans Goldman Sachs Group Inc and Morgan Stanley; feds had ordered the cash infusion to save the institution.

Carver Federal Savings, the nation’s largest bank founded and run by African-Americans, has staved off possible collapse by raising $55 million in fresh capital.

The investors include Goldman Sachs Group Inc. and Morgan Stanley, which have agreed to invest $15 million each, while Citigroup Inc. and Prudential Financial have agreed to put in $10 million, according to an announcement from Carver’s parent, Carver Bancorp. American Express and three other firms are investing smaller amounts. Chief Executive Deborah Wright, who has led the bank since 1999, will remain at her post.

“I haven’t had a day this good in some time,” said a relieved Ms. Wright, who added she was “terribly grateful” for the financial community’s vote of confidence in her bank. “We have a lot of hard work ahead.”

The Harlem-based bank was ordered by federal regulators earlier this year to raise additional cash as it staggered under a hefty load of delinquent real estate loans. Under Ms. Wright’s leadership, the bank had moved from its traditional business of lending to one- to- four-family homes and into larger commercial real estate projects. That strategy backfired when the real estate market hit the skids and mortgages for low-income borrowers dried up.

Earlier this year, 12.3% of the bank’s loan portfolio was more than 90 days delinquent. The industry average is 4.9%, according to Federal Deposit Insurance Corp. data. In addition, although $74 million of its loans were well overdue, Carver had just $21 million in reserves to cover loan losses.

In February, the U.S. Office of Thrift Supervision ordered Carver to raise additional capital by the end of April or face being seized and sold to another institution—or simply dissolved. The amount Carver raised exceeds the amount demanded by regulators, Ms. Wright said.

Last month, the bank named a new chief financial officer—its fourth in the past three years—and said it hired an recruiter to find a new president and chief operating officer who would oversee lending, retail, marketing and human resources. Ms. Wright said the new executive would allow her to devote the bulk of her time to drumming up new business, adding that Carver will soon step up its marketing.

The Harlem business community galvanized to help rescue Carver, a fixture of the city since 1948. Lloyd Williams, CEO of the Greater Harlem Chamber of Commerce, said a private breakfast was held in late April at Sylvia’s Restaurant in which Ms. Wright and senior Carver officials met with former state Comptroller Carl McCall, former city Comptroller Bill Thompson, U.S. Rep. Charles Rangel and other Harlem business and political leaders to discuss ways to turn around Carver.

“It is exciting, and the community is now stepping up to the plate,” Mr. Williams said shortly after that meeting, “because they have been asked to do so in a meaningful manner.”

 

Wake Up, New York

by | BUSINESS, NEW YORK, TAXES

A recent Op-Ed in the New York Post by John Faso, discusses the shrinking population in New York State and its implications for the future.

Faso surmises that New Yorkers are fleeing the state — most famously Rush Limbaugh —  because of high taxes and dismal job prospects. Our state is nearly bankrupt and has been increasingly burdensome and hostile to businesses in recent years. The population decline means a loss of two more seats in the House of Representatives. More importantly, this means that New York is no longer as powerful as it has been in terms of policy.

Faso reminds us about the challenges we as New Yorkers face and what we can do to surmount them.