Congressman Mike Lawler released a statement on Apr. 8 opposing Governor Kathy Hochul’s proposed budget provisions that would affect small businesses in New York.
The issue centers on the Pass-Through Entity Tax (PTET) workaround, which was preserved in the Working Families Tax Cuts Act to provide tax relief for pass-through entities across the state. Lawler said changes to this provision could increase taxes for small business owners and make it harder for them to operate.
“New York continues to lose residents and businesses, and Albany should be focused on making it easier, not harder, to live, work, and conduct business here,” Lawler said. He added that at a time when small businesses are already facing higher costs, weakening the PTET credit “amounts to a tax increase on the very employers who power our economy.” According to Lawler, “The PTET was designed to prevent double taxation and keep New York competitive. Undermining it does the opposite.”
Lawler also said that if these changes go through, there will be “higher taxes, fewer resources to invest and hire, and greater pressure on businesses already on the edge.” He argued that this move contradicts Governor Hochul’s commitment not to raise taxes: “because when small business owners pay more, that’s exactly what it is.” He concluded by saying: “We should be focused on lowering costs, supporting job creators, and keeping New York competitive.”
Lawler represents New York’s 17th Congressional District just north of New York City. He has been recognized as one of Congress’s most bipartisan members and was rated as the most effective freshman lawmaker in the 118th Congress.
