Businesses Bailout New York State Debt to the Federal Government
The Business Tax in New York State
The Governor of New York has explicitly stated that there will be "no new taxes."
Yet, this past month, thousands upon thousands of businesses across New York State received a letter that stated in part,
"The recent national recession led to record high numbers of unemployed workers -- New York State had to borrow over $3 billion from the federal government -- "
The letter went on to state that the federal government is demanding that the interest be paid and New York doesn't have the money to pay the loan. Therefore, the Department of Labor has decided to get businesses in New York to ante up the cash.
"In order to pay the interest due to the federal government of approximately $95 million in interest on these loans by September 30, 2011 -- "
Instead of levying a tax because the governor has said repeatedly that there will be "no new taxes," the Labor Department is calling it "An Interest Assessment Surcharge for 2011."
I would like to inform the governor, the NY Senate and Assembly and everyone at the Department of Labor that the definition of tax is as follows:
"A sum of money demanded by the government for its support or for specific facilities or services that is levied upon income, property, sales, etc."
The Interest Assessment Surcharge is a TAX even though the governor and the Department of Labor have renamed it. When the local businesses are being sacked with taxes it will inevitably trickle down to the consumer one way or another.
Businesses across NYS are scrambling to pay these fees before their deadline or face penalties and interest charges. And, if the federal government decides to extend the deadline for New York to payback the loan interest, New York has informed the business owners that they will not be receiving a refund of their money rather it will be put on their accounts in the form of a credit that will not pay them interest. Imagine that.
A tax by any other name still stinks.
Sources:
http://www.labor.ny.gov/ui/employerinfo/interest-assessment-surcharge.shtm
Published by Michele Starkey
Optimist who enjoys writing, laughing and spreading good news. If I have but one life to live, I hope to make mine memorable. My epitaph will read: she lived, she loved, she left. View profile
2010 Unemployment Extension - Dec. 30'TH Department of Labor New Claims...Unemployment is still in a free-fall- Department of Labor Awards $10.1 Million to Support Health and Safety Training at...The United States Department of Labor's Occupational Safety and Health Administration (OSHA) announced that they awarded $10.1 million to non-profit organizations for safety and health training purposes.
- Tier V Unemployment Extension - Mixed Messages from Today's Dept. Of Lab...Data from the Dept. of Labor released on Thursday, October 7, 2010 provides conflicting information for those looking for an improvement in the jobs market.
New York State Takes Action Against Companies Doing Business in the SudanNew York State Comptroller Thomas DiNapoli has announced a three-step plan to bring pressure on the government of the Sudan to end the genocide in Darfur.- New York State Park Field Trip Ideas for TeachersAwesome New York State Parks for great field trips for students of any age.
- Top 10 Tax-Saving Tips for Your Business
- Are You Ready for a Department of Labor Audit
- Department of Labor Provides Useful Tools for Human Resource Managers and Job Seek...
- U.S. Department of Labor Announces Green Jobs Initiative
- Department of Labor Moves to Reduce Delinquency in Labor Union Reporting
- 2010 Unemployment Extension - Latest Department of Labor Weekly New Claims Are Up
- 2010 Unemployment Extension - Dec. 23'RD Department of Labor New Claims Data
50 Comments
Post a CommentTerrible all around!
Another great one!!
Excellent report, not so excellent government...
How underhanded is that to use "weasel words" to push something through. They know people can't do anything about it. Very pathetic, and upsetting to hear about.
Excellent article!
This smells a lot like "taxation without representation" to me... an excellent article, Michele. Thanks!
Unbelievable. I've already been hit up by the IRS this summer. If NYS comes at me, too, you might be reading my name in the paper!
Great article Michele!!
It sure does stink Michele. And all the burden will fall on us. Kill smy heart to know.
excellent writing:)