Giuliani Campaign Press Release - Rudy on the Record: Mayor Giuliani Cut Taxes 23 Times

Giuliani Worked With New York City's Democratic City Council To Reduce Taxes 23 Times. Giuliani: "We wanted to reduce taxes and be able to accomplish some of that with the Democratic City Council, overwhelmingly Democratic. We ended up reducing taxes … 23 times successfully …" (Mayor Rudy Giuliani, Interview With WOKQ Radio's Don Brian, Portsmouth, NH, 3/12/07)

GIULIANI'S TAX CUT HIGHLIGHTS

Sales Tax Exemptions

Giuliani Announced Sales Tax Holiday For A Week in January 1997. "This past summer, at my urging, the Governor and State Legislature authorized a one-week New York State sales tax exemption on clothing and footwear purchases to be in effect the week of January 18-24, 1997. As first proposed in the Fiscal 1996 Budget, this tax break would help to make New York City's business community more competitive in the key area of retail sales. … New York City has added to the effectiveness of this tax initiative by allowing the exemption of our local sales tax. We will continue to encourage the State Legislature to expand this initiative from one week to 52 weeks of the year." (Mayor Rudy Giuliani, "Mayor's WINS Address," Mayor's Message, 1/12/97, http://www.nyc.gov/html/records/rwg/html/97a/me970112.html, Accessed 7/28/07)

In August 1997, Giuliani Announced "Back To School" Sales Tax Holiday For Clothing Less Than $100. "With this in mind, last Sunday I was happy to announce that September 1 to 7 will be a week of sales-tax free clothes shopping. … Our 'Back to School' clothing sales tax exemption works for the same reason. For that first week in September, New York City will keep its business right here where it belongs because items of apparel that sell for less than $100 will not be subject to the sales tax. You might remember a similar tax-free experiment for a week in January, where we saw sales jump all throughout the five boroughs, and heard very positive feedback from retailers." (Mayor Rudy Giuliani, "A Welcome Break From A Burdensome Tax," Mayor's Message, 8/18/97, http://www.nyc.gov/html/records/rwg/html/97/me970818.html, Accessed 7/28/07)

Success Of Sales Tax Holidays Led To Permanent Elimination Of Sales Tax On Clothing $100 Or Less. "Because of the success we had during our two 'sales tax vacation weeks,' we were able to lobby Albany to permanently eliminate the sales tax for clothing purchases of $100 or less, excluding footwear, starting in December of 1999. But this is not enough. The goal is to obtain an elimination of the sales tax on clothing purchases of $500 or less, including footwear, because I think that doing so would be good for business and for our residents and it would produce more jobs. The sales tax is a regressive tax because people with less income spend a greater percentage on clothing purchases." (Mayor Rudy Giuliani, "New York City Is Reducing The Tax Burden And Investing In Jobs For Our Future," Mayor's Message, 10/20/97, http://www.nyc.gov/html/records/rwg/html/97/me971020.html, Accessed 7/28/07)

Sales Tax Exemptions Required State Legislative Action In Order To be Enacted. Mayor Giuliani proposed and enacted a wide range of sales tax exemptions in almost every budget. As is the case with nearly every City tax, they required state legislative action to enact. These tax cuts were reductions in the City sales tax, not just the State sales tax. (City Of New York Office Of Management And Budget, The City Of New York Executive Budgets Fiscal Years 1995-2002; City Of New York Office Of Management And Budget, The City Of New York Executive Budget Fiscal Year 2002 Mayor's Message, p. 71)

Reduction And Elimination Of Commercial Rent Tax

Giuliani Eliminated Commercial Rent Tax In Four Boroughs And Parts Of Manhattan And Reduced Tax In Areas Where Tax Remained. "Every time you turn around it seems New York City is receiving more good news. … They have good reason to believe New York City is back. … One of the keys to the city's economic revitalization is that we have reduced the tax burden for New Yorkers. We have eliminated the commercial rent tax in all four boroughs outside of Manhattan, and in Manhattan we have eliminated the commercial rent tax south of Chambers Street and North of 96th Street. In the area in Manhattan where the commercial rent tax still applies, it has been reduced. Because of the reduction, $300 million will be returned to the private sector, money which will allow businesses to expand, hire new employees, and which will continue to foster growth in our economy." (Mayor Rudy Giuliani, "New York City Is Reducing The Tax Burden And Investing In Jobs For Our Future," Mayor's Message, 10/20/97, http://www.nyc.gov/html/records/rwg/html/97/me971020.html, Accessed 7/28/07)

Unincorporated Business Tax

Giuliani Reduced Unincorporated Business Tax, Which Was "Particularly Unfair To Small Businesses." "At the same time, we have reduced the unincorporated business tax, another tax that was particularly unfair to small businesses. This year we will return almost $100 million to small business through our unincorporated business tax reform. Because of the success we have had in reducing the UBT, our goal for the next four years is to eliminate the tax entirely." (Mayor Rudy Giuliani, "New York City Is Reducing The Tax Burden And Investing In Jobs For Our Future," Mayor's Message, 10/20/97, http://www.nyc.gov/html/records/rwg/html/97/me971020.html, Accessed 7/28/07)

Reduction Of Personal Income Tax

Giuliani: "The Reduction [In 14% Surcharge On Personal Income Tax] Will Save New Yorkers … Over $200 Million By 2004." "In 1991, the City began charging residents a fourteen-percent surcharge on their personal income tax. At the time, residents were promised that the surcharge would be temporary. Today we take the first step toward fulfilling that promise by significantly reducing the surcharge. The reduction will save New Yorkers $87 million in 2001 and over $200 million by 2004." (Mayor Rudolph Giuliani, "Mayor Giuliani Signs Bill Reducing City Personal Income Tax Surcharge," Press Release, 12/4/00)

Utility Transmission And Distribution Sales Tax Exemption

Utility Transmission And Distribution Sales Tax Exemption Came From Giuliani's 1999 Tax Reform Task Force. In January 1999, Mayor Giuliani convened a Tax Reform Task Force that reported in December a wide range of recommendations, many of which required legislative action at the state level. Among the Task Force's long term recommendations was "Utility Tax Reform," and the report laid out a number of reform ideas, mostly focused on shifting from taxing utility companies' gross receipts to taxing their net income. It was from these proposals that the City's support for a sales tax exemption emerged, passing in the 2000 Legislative Session. (Mayor's Tax Reform Task Force, Report To Mayor Rudolph Giuliani On The Recommendations Of The Tax Reform Task Force, 12/99, p. 2, 5, 23-24)

Marriage Penalty Reduction

Marriage Penalty Was Reduced After Being Presented As One Of Giuliani's 1999 Tax Reform Task Force Recommendations. Mayor Giuliani's 1999 Tax Reform Task Force specifically recommended, "Provide personal income tax relief to two-earner households through the elimination of the marriage penalty." This proposal was passed in the 2000 Legislative Session. (Mayor's Tax Reform Task Force, Report To Mayor Rudolph Giuliani On The Recommendations Of The Tax Reform Task Force, 12/99, p. 13)

School Tax Relief (STAR) Property Tax Rebate

Giuliani's Lobbied Governor Pataki To Expand His STAR Property Tax Rebate To Include "Owner-Occupied Co-ops," And Without His Efforts, That Tax Would Not Have Been Enacted. Governor Pataki To Expand Governor Pataki proposed a school tax relief program that "was greeted with cheers from upstate voters and criticism from downstate politicians" because, while it "would grant homestead and lower-income exemptions for owner-occupied homes and condominiums," it did not include "rental apartments" or "cooperative buildings." As was reported at the time, "Giuliani knocked the Governor for spelling out less relief for city owners and offering no relief for renters and cooperators." Under the New York State budget process, the Governor has thirty days to amend his proposed budget after presenting it. As was reported at the time, in response to "outcries from New York City Mayor Rudolph Giuliani" and other City leaders, Pataki added "owner-occupied co-ops." Thus, while the state may have initiated the STAR proposal, without Mayor Giuliani's efforts, it would not have benefited City residents. Mayor Giuliani formally objected to Pataki's initial proposal in his FY1998 Executive Budget, noting, "This proposal ignores the reality of the City's housing characteristics." When the STAR program passed the State Legislature, it addressed these concerns. (Lois Weiss, "School Tax Relief Gets Mixed Reviews; New York City," Real Estate Weekly, 1/29/97; Lois Weiss, "Governor Adds Co-Ops To Tax Plan," Real Estate Weekly, 2/19/97; City Of New York Office Of Management And Budget, The City Of New York Executive Budget Fiscal Year 1998 Budget Summary, p. 46-47)

STAR Income Tax Relief

Giuliani Also Lobbied Pataki To Expand STAR Program To Include "City Sponsored" Personal Income Tax reduction. While the state may have initiated the STAR proposal, without Mayor Giuliani's efforts, it would not have benefited City residents. Mayor Giuliani formally objected to Pataki's initial proposal in his FY1998 Executive Budget, noting, "This proposal ignores the reality of the City's housing characteristics." Giuliani's Budget Summary further explained, "New York City funds education with all of the City's tax revenue, not just the property tax. Therefore, relief should also be granted by reducing the Personal Income Tax — which is paid by both homeowners and renters." When the STAR program passed the State Legislature, it addressed these concerns. The FY1999 Executive Budget outlines the "City Sponsored" Personal Income Tax reduction. (City Of New York Office Of Management And Budget, The City Of New York Executive Budget Fiscal Year 1998 Budget Summary, p. 46-47; City Of New York Office Of Management And Budget, The City Of New York Executive Budget Fiscal Year 1999 Budget Summary, p. 27)

12.5% Personal Income Tax Surcharge

Giuliani Worked With Democrat Legislature To Eliminate 12.5% Personal Income Tax Surcharge. Mayor Giuliani proposed elimination of the 12.5% Personal Income Tax surcharge in his first budget (FY1995) and again called for it in his FY1996 budget. He never opposed its elimination. He did, however, want to make sure that when the City cut taxes, it did so in a fiscally responsible way by also restraining government spending. When the City Council made its proposal to eliminate the surcharge in FY1998, Mayor Giuliani had already presented his own proposed tax and spending cuts. The Council's proposal included wasteful spending Mayor Giuliani did not support. As he said at the time, "My objection to the tax cut was not doing the tax cut … It was the order in which it was done. First you should reduce the spending, then you cut the taxes." Ultimately, Mayor Giuliani did was all good executives do — he worked with the City Council to achieve the tax cuts and restrain spending. Mayor Giuliani also opposed later efforts to reinstate the tax. (City Of New York Office Of Management And Budget, The City Of New York Executive Budget Fiscal Year 1995 Budget Summary, p. 17; City Of New York Office Of Management And Budget, The City Of New York Executive Budget Fiscal Year 1996 Budget Summary, p. 19; Abby Goodnough, "In Budget Pact, Giuliani and Council Drop a Tax Surcharge," The New York Times, 11/18/98; Leonard Greene, "Rudy Unveiling His New Budget," Newsday, 4/24/98; Julian E. Barnes "Budget Office Sends Out The Word: Cut Your Budgets," The New York Times, 11/27/98; David Seifman "Fields: Bring Back Surtax To Save Schools," The New York Post, 2/24/01)

Hotel Occupancy Tax

In 1993, Giuliani Campaigned On Reducing Hotel Occupancy Tax. "Appearing outside the Market Diner at 43d Street and 11th Avenue yesterday morning, Mr. Giuliani said he would cut the city's hotel tax in half, to 3 percent from 6 percent, and would challenge the State Legislature to match or exceed that reduction to attract more tourism and to end a boycott of the city led by the Professional Convention Management Association. Mr. Giuliani said his goal was to reduce total hotel taxes from 21.25 percent now to from 14 to 16 percent after the tax cuts." (Catherine Manegold, "Plan Offered By Giuliani On Reducing Hotel Taxes," The New York Times, 8/19/93)

Giuliani Worked With City Council Speaker Vallone And Heavily Democratic City Council To Cut Hotel Occupancy Tax In His First Budget. "'The budget that the City Council will adopt reduces spending by over $100 million from last year's budget and reduces City headcount by 15,000. This budget will eliminate the City portion of the hotel occupancy tax, as well as reduce the commercial rent tax,' said Mayor Giuliani. 'It is a testament to our collective willingness to employ creative strategies to downsize government and cut taxes.'" (Mayor Rudy Giuliani, Mayor Giuliani and Speaker Vallone Agree on FY '95 Budget, Press Release, 6/21/94).

Giuliani Was Praised By President Of Hotel Association For Cutting The Hotel Occupancy Tax. "On behalf of the members of the Association, I commend Mayor Giuliani for his follow through on this sorely needed tax reduction," said Mr. Spinnato (President of the Hotel Association). "Because of his actions, we can expect an increase in business for our members as well as the stores, restaurants and theatres that our guests will surely patronize." (Mayor Rudy Giuliani, Mayor Giuliani Rolls Back Hotel Occupancy Tax, Press Release, 12/1/94)

GIULIANI'S 23 TAX CUTS

ONE: Expiration Of 12.5% Personal Income Tax Surcharge. First proposed in fiscal year 1995 budget and enacted in fiscal year 1999. (City Of New York Office Of Management And Budget, City Of New York Executive Budget Fiscal Year 1995 Budget Summary, p. 17; City Of New York Office Of Management And Budget, City Of New York Executive Budget Fiscal Year 2000 Budget Summary, p. 18)

TWO: Hotel Tax Reduced From 6% To 5%. Proposed and enacted in fiscal year 1995 budget. (City Of New York Office Of Management And Budget, City Of New York Executive Budget Fiscal Year 1995 Budget Summary, p. 17; City Of New York Office Of Management And Budget, City Of New York Executive Budget Fiscal Year 1996 Budget Summary, p. 18)

THREE: Reductions In Commercial Rent Tax. Proposed and enacted in fiscal year 1995 budget. (City Of New York Office Of Management And Budget, City Of New York Executive Budget Fiscal Year 1995 Budget Summary, p. 17; City Of New York Office Of Management And Budget, City Of New York Executive Budget Fiscal Year 1996 Budget Summary, p. 18)

FOUR: Unincorporated Business Tax Reforms And Credits. Reform package was first proposed and enacted in fiscal year 1995 budget. Increase in the UBT tax credit was first proposed in fiscal year 1995 budget and enacted in fiscal year 1997. (City Of New York Office Of Management And Budget, City Of New York Executive Budget Fiscal Year 1995 Budget Summary, p. 17; City Of New York Office Of Management And Budget, City Of New York Executive Budget Fiscal Year 1996 Budget Summary, p. 18; City Of New York Office Of Management And Budget, City Of New York Executive Budget Fiscal Year 1998 Budget Summary, p. 42)

FIVE: Commercial Revitalization Program. A variety of tax benefits that delivered incentives to commercial property owners. First changes proposed and enacted in fiscal year 1997. (City Of New York Office Of Management And Budget, City Of New York Executive Budget Fiscal Year 1998 Budget Summary, p. 43; see also,City of New York Tax Forecasting Documentation, p. I-12)

SIX: Banking Corporation Tax. Tax cuts for banking corporations doing business in New York City effective for tax years on or after 1996. (City Of New York Office Of Management And Budget, City Of New York Executive Budget Fiscal Year 2002 Message Of The Mayor, p. 62)

SEVEN: Co-op/Condo Tax Relief. First proposed in 1994. Enacted by fiscal year 1997 and later extended. (City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1995 Budget Summary, p. 17; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1996 Budget Summary, p. 19; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1997 Budget Summary, p. 14; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1998 Budget Summary, p. 42)

EIGHT: Business Tax Reform. A number of tax reforms first proposed in 1996. Enacted in fiscal year 1998. (City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1997 Budget Summary, p.14; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1998 Budget Summary, p. 42)

NINE: Sales Tax — Misc. Exemptions. Several different sales tax exemptions first proposed in 1994. First sales tax exemptions enacted in fiscal year 1996. (City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1995 Budget Summary, p. 17; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1996 Budget Summary, p. 19; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1997 Budget Summary, p. 14; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1998 Budget Summary, p. 42)

TEN: Sales Tax — Clothing Exemptions. Several different sales tax exemptions. First proposed in 1994. First clothing exemption passed in 1997. (City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1995 Executive Budget Summary, p. 17; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1996 Budget Summary, p. 19; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1997 Budget Summary, p. 15-16; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1998 Budget Summary, p. 42-43; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1999 Budget Summary, p. 24-25; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2000 Budget Summary, p. 18-19; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2001 Budget Summary, p. 42; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2002 Budget Summary, p. 50)

ELEVEN: Resident UBT/PIT Credit. For tax year 1997, unincorporated business owners were allowed to take a partial credit against their City personal income tax liability. (City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2002 Mayor's Message, p. 67; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1999 Budget Summary, p. 25)

TWELVE: Real Property Transfer Tax Exemption For Assumable Mortgages. First proposed in 1997. Tax relief provided in fiscal year 1998. (City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1998 Budget Summary, p. 43; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1999 Budget Summary, p. 24)

THIRTEEN: Elimination of Vault Charge. First proposed in 1996. Eliminated by fiscal year 1999. (City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1997 Budget Summary, p. 15-16; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1999 Budget Summary, p. 24)

FOURTEEN: Elimination of Tax on Coin-Operated Amusement Devices. First proposed in 1996. Eliminated by fiscal year 1999. (City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1997 Budget Summary, p. 15-16; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 1999 Budget Summary, p. 24)

FIFTEEN: College Tuition Deduction PIT. Proposed and eliminated in 2002. (City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2002 Budget Summary, p. 50)

SIXTEEN: Marriage Penalty Reduction. First proposed 1999 and passed in 2000. (Mayor's Tax Reform Task Force, Report To Mayor Rudolph Giuliani On The Recommendations Of The Tax Reform Task Force, 12/99, p. 13; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2002 Budget Summary, p. 50)

SEVENTEEN: Sales Tax Exemption on Utility Transmission And Distribution. Grew out of 1999 utility tax reform proposals. Passed in 2000. (Mayor's Tax Reform Task Force, Report To Mayor Rudolph Giuliani On The Recommendations Of The Tax Reform Task Force, 12/99, p. 2, 5, 23-24; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2002 Budget Summary, p. 50)

EIGHTEEN: Web Hosting And HDTV Equipment Sales Tax Exemption. Grew out of proposals from 1999 examining tax treatment of new media industries. 2000 Legislative Session. (City of New York Mayor's Office, "Mayor Giuliani Announces Initiative To Transform Unused Water Main Into Conduit For High-Speed Telecommunications Network And Digital NYC Program To Expand Silicon Alley Citywide," Press Release, 4/3/00; Mayor's Tax Reform Task Force, Report To Mayor Rudolph Giuliani On The Recommendations Of The Tax Reform Task Force, 12/99, p. 28; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2002 Budget Summary, p. 50)

NINETEEN: A Reduction In Taxes On Bank Mutual Fund Companies. First proposed in 1999. Passed in 2000. (Mayor's Tax Reform Task Force, Report To Mayor Rudolph Giuliani On The Recommendations Of The Tax Reform Task Force, 12/99, p. 20; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2002 Budget Summary, p. 50)

TWENTY: Cut In 14% PIT Surcharge. Proposed in 2000 and enacted by fiscal year 2002. (City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2001 Budget Summary, p. 43; City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2002 Budget Summary, p. 50)

TWENTY-ONE: Borough Development Program. Proposed and created in 2001. (City of New York Office of Management and Budget, City of New York Executive Budget Fiscal Year 2002 Budget Summary, p. 50)

TWENTY-TWO: STAR Personal Income Tax. Proposed in 1998. Tax benefits provided in fiscal year 1999. (City Of New York Office Of Management And Budget, The City Of New York Executive Budget Fiscal Year 1998 Budget Summary, p. 46-47; City Of New York Office Of Management And Budget, The City Of New York Executive Budget Fiscal Year 1999 Budget Summary, p. 27)

TWENTY-THREE: STAR Property. Changes benefiting New York City proposed in fiscal year 1998 Executive Budget. Tax benefits provided in fiscal year 1999. (City Of New York Office Of Management And Budget, The City Of New York Executive Budget Fiscal Year 1998 Budget Summary, p. 46-47; City Of New York Office Of Management And Budget, The City Of New York Executive Budget Fiscal Year 1999 Budget Summary, p. 27)