senate Bill S4500A

2013-2014 Legislative Session

Repeals the minimum wage reimbursement credit

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

do you support this bill?

Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 23, 2014 print number 4500a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
Apr 03, 2013 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

view additional co-sponsors

S4500 - Bill Details

See Assembly Version of this Bill:
A6922A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Rpld §§38 & 187-s, §210 sub 46, §606 sub§ (i) ¶1 sub¶ (B) cl (xxxv), sub§ (aaa), §1456 sub§ (z), §1511 sub (cc), Tax L

S4500 - Bill Texts

view summary

Repeals the minimum wage reimbursement credit.

view sponsor memo
BILL NUMBER:S4500

TITLE OF BILL: An act to repeal certain provisions of the tax law
relating to the minimum wage reimbursement credit

PURPOSE:

To repeal the minimum wage reimbursement credit.

SUMMARY OF PROVISIONS:

Sections 1 through 7 of the bill repeal and amend those sections of
law which relate to the minimum wage reimbursement tax credit.

Section 8 establishes the effective date.

JUSTIFICATION:

The 2013 New York State Budget raised New York's minimum wage through
a three-year phase-in that will reach $9.00 in 2016. While there are
many who believe that this increase did not go far enough, fast enough
and that it should have included indexing that would cause the wage to
automatically rise along with inflation or the cost of living, any
increase in the minimum wage goes a long way to helping thousands of
hard-working New Yorkers who are struggling just to make ends meet.
However, the minimum wage agreement also included what amounts to a
poison pill, in the form of an uncapped, taxpayer-subsidized credit
that perversely incentives businesses, including mega-corporations, to
replace adult workers with teenagers and keep wages as low as
possible.

Simply put, this tax credit is an ill-conceived, counterproductive
piece of policy and a waste of precious resources. While there is no
cap on the amount of the credit that can be allocated, it is
conservatively expected to cost the state between $20 and $40 million
per year. The ostensible goal of improving the employment prospects of
young people could be vastly better served by any number of
initiatives that would not carry the same disastrous incentives such
as more than doubling funding for the Summer Youth Employment Program.

There is also essentially no protection for fired workers. While
firing someone solely to get this tax credit is technically against
the law, technically only matters if the person who gets fired: knows
about the tax break, knows about the law, knows that she got fired so
she could be replaced by an eligible teenager, can prove that her
employer's desire to access the credit is the only reason she was
fired, and has time to wait for her case to be resolved within an
overburdened, underfunded system.

This tax credit has been roundly criticized not only by workers'
rights advocates and other voices from the left, but by staunchly
business-friendly outfits from the Wall Street Journal to Crain's New
York Business to the Empire Center for New York State Policy. No less
than Greg David of Crain's described the specifics of the tax break as
follows:


"The state will subsidize the entire increase in the minimum wage for
workers between 16 and 19 in the first year and up to 75% in the third
year, when the wage is increased to S9 an hour. So firing someone 20
and over and replacing them with someone the right age offers
employers a bonus of $1,560 to $2,808. Only people making exactly the
minimum wage qualify for the credit, so there is a strong incentive
not to pay any more. Oh, and the credit is available to all companies.
McDonald's franchises upstate will get a lot of benefits; those in the
city who routinely pay more than the minimum wage now have an
incentive to lower wages."

This is a bad and destructive piece of policy and a waste of taxpayer
dollars. It is in the best interest of workers, responsible
businesses, and the State as a whole that this tax credit be repealed
immediately.

LEGISLATIVE HISTORY:

This is a new bill

FISCAL IMPLICATIONS:

Significant savings to the state.

EFFECTIVE DATE:

This act shall take effect immediately and shall be deemed to have
been in full force and effect on and after March 28, 2013.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4500

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              April 3, 2013
                               ___________

Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to repeal certain provisions of the tax law relating to the mini-
  mum wage reimbursement credit

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 38 of the tax law, as added by section 1 of part EE
of chapter 59 of the laws of 2013, is REPEALED.
  S 2. Section 187-s of the tax law, as added by section 2 of part EE of
chapter 59 of the laws of 2013, is REPEALED.
  S 3. Subdivision 46 of section 210 of the tax law, as added by section
3 of part EE of chapter 59 of the laws of 2013, is REPEALED.
  S  4.  Clause  (xxxv) of subparagraph (B) of paragraph 1 of subsection
(i) of section 606 of the tax law, as added by section 4 of part  EE  of
chapter 59 of the laws of 2013, is REPEALED.
  S  5.  Subsection  (aaa)  of  section  606 of the tax law, as added by
section 5 of part EE of chapter 59 of the laws of 2013, is REPEALED.
  S 6. Subsection (z) of section 1456  of  the  tax  law,  as  added  by
section 6 of part EE of chapter 59 of the laws of 2013, is REPEALED.
  S  7.  Subdivision  (cc)  of  section 1511 of the tax law, as added by
section 7 of part EE of chapter 59 of the laws of 2013, is REPEALED.
  S 8. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after March 28, 2013.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10133-01-3

Co-Sponsors

view additional co-sponsors

S4500A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A6922A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Rpld §§38 & 187-s, §210 sub 46, §606 sub§ (i) ¶1 sub¶ (B) cl (xxxv), sub§ (aaa), §1456 sub§ (z), §1511 sub (cc), Tax L

S4500A (ACTIVE) - Bill Texts

view summary

Repeals the minimum wage reimbursement credit.

view sponsor memo
BILL NUMBER:S4500A REVISED 1/24/14

TITLE OF BILL: An act to repeal certain provisions of the tax law
relating to the minimum wage reimbursement credit

PURPOSE: To repeal the minimum wage reimbursement credit.

SUMMARY OF PROVISIONS:

Sections 1 through 7 of the bill repeal and amend those sections of
law which relate to the minimum wage reimbursement tax credit.

Section 8 establishes the effective date.

JUSTIFICATION: The 2013 New York State Budget raised New York's
minimum wage through a three-year phase-in that will reach $9.00 in
2016. While there are many who believe that this increase did not go
far enough, fast enough and that it should have included indexing that
would cause the wage to automatically rise along with inflation or the
cost of living, any increase in the minimum wage goes a long way to
helping thousands of hard-working New Yorkers who are struggling just
to make ends meet. However, the minimum wage agreement also included
what amounts to a poison pill, in the form of an uncapped,
taxpayer-subsidized credit that perversely incentives businesses,
including mega-corporations, to replace adult workers with teenagers
and keep wages as low as possible.

Simply put, this tax credit is an ill-conceived, counterproductive
piece of policy and a waste of precious resources. While there is no
cap on the amount of the credit that can be allocated, it is
conservatively expected to cost the state between $20 and $40 million
per year. The ostensible goal of improving the employment prospects of
young people could be vastly better served by any number of
initiatives that would not carry the same disastrous incentives such
as more than doubling funding for the Summer Youth Employment Program.

There is also essentially no protection for fired workers. While
firing someone solely to get this tax credit is technically against
the law, technically only matters if the person who gets fired: knows
about the tax break, knows about the law, knows that she got fired so
she could be replaced by an eligible teenager, can prove that her
employer's desire to access the credit is the only reason she was
fired, and has time to wait for her case to be resolved within an
overburdened, underfunded system.

This tax credit has been roundly criticized not only by workers'
rights advocates and other voices from the left, but by staunchly
business-friendly outfits from the Wall Street Journal to Crain's New
York Business to the Empire Center for New York State Policy. No less
than Greg David of Crain's described the specifics of the tax break as
follows:

"The state will subsidize the entire increase in the minimum wage for
workers between 16 and 19 in the first year and up to 75% in the third
year, when the wage is increased to $9 an hour. So firing someone 20
and over and replacing them with someone the right age offers
employers a bonus of $1,560 to $2,808. Only people making exactly the


minimum wage qualify for the credit, so there is a strong incentive
not to pay any more. Oh, and the credit is available to all companies.
McDonald's franchises upstate will get a lot of benefits; those in the
city who routinely pay more than the minimum wage now have an
incentive to lower wages."

This is a bad and destructive piece of policy and a waste of taxpayer
dollars. It is in the best interest of workers, responsible
businesses, and the State as a whole that this tax credit be repealed
immediately.

LEGISLATIVE HISTORY: This is a new bill

FISCAL IMPLICATIONS: Significant savings to the state.

EFFECTIVE DATE: This act shall take effect immediately and shall be
deemed to have been in full force and effect on and after January 1,
2014.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4500--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              April 3, 2013
                               ___________

Introduced  by  Sens. PERALTA, AVELLA, BRESLIN, GIANARIS, KRUEGER, MONT-
  GOMERY, PARKER, SAMPSON, SERRANO, STAVISKY -- read twice  and  ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations  and  Government Operations -- recommitted to the Committee on
  Investigations and Government Operations  in  accordance  with  Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to repeal certain provisions of the tax law relating to the mini-
  mum wage reimbursement credit

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 38 of the tax law, as added by section 1 of part EE
of chapter 59 of the laws of 2013, is REPEALED.
  S 2. Section 187-s of the tax law is REPEALED.
  S 3. Subdivision 46 of section 210 of the tax law is REPEALED.
  S  4.  Clause  (xxxv) of subparagraph (B) of paragraph 1 of subsection
(i) of section 606 of the tax law, as added by section 4 of part  EE  of
chapter 59 of the laws of 2013, is REPEALED.
  S 5. Subsection (aaa) of section 606 of the tax law is REPEALED.
  S 6. Subsection (z) of section 1456 of the tax law is REPEALED.
  S 7. Subdivision (cc) of section 1511 of the tax law is REPEALED.
  S  8.  This  act  shall take effect immediately and shall apply to tax
years commencing on or after January 1, 2014.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10133-02-4

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.