O’Mara: Paterson’s Utility Tax Hike

Will Hurt New York Families and Businesses

Assemblyman Tom O’Mara (R,I,C-Big Flats) today blasted Governor Paterson for proposing to increase taxes on utilities and telephone companies.  O’Mara argues that the tax hikes will be passed onto consumers meaning that New York families and businesses will be forced to pay higher utility rates at a time when they can least afford to. 

Under the governor’s proposal, what are known as 18(A) surcharges on utilities and telephone companies will be increased by 550% percent.  According to reports, the proposal would result in a two percent increase on every New Yorker’s utility bill and will bring in an estimated $651 million to the state

 “The utility tax increase is yet another misguided policy being pushed by Governor Paterson, one that will create another obstacle in the way of promoting a more business-friendly environment in the Southern Tier and Upstate New York,” said O’Mara.  “If enacted, I fear that this tax will put tremendous strains on the region’s manufacturing sector and will result in job loss and lead to companies going out of business.”      

Assemblyman O’Mara noted that the utility tax would also apply to energy service companies, which sell gas and electricity and could have a negative effect on natural gas producers in the region.

“At a time when families and businesses are struggling just to get by, the last thing Governor Paterson or legislative leaders should be considering is placing additional burdens on their shoulders,” remarked O’Mara. “Instead of increasing taxes and fees, the Legislature should be working on a comprehensive energy plan that will promote the use and creation of alternative energy in order to lower the cost of power in New York and create good-paying jobs.”

            “Higher taxes are not the solution to New York’s budgetary problems and will only exasperate the current economic crisis the state is now facing.  Until the governor comes to understand this, I fear the state will continue to lose jobs and people,” concluded O’Mara.

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