Legislature Expected to Vote on Governor's Tax-Free Proposal This Week

June 16, 2013 Updated Jun 16, 2013 at 6:33 PM EDT


June 16, 2013 Updated Jun 16, 2013 at 6:33 PM EDT

Some economists are calling Governor Cuomo's new "Tax-Free NY" program "progressive" and the first of its kind to be introduced in the United States. However, others are saying it could potentially be a detriment to the local economy.

New York attracts only 4 percent of the nation's venture capital investments, compare that to California, which boasts 47 percent.

Now, Governor Cuomo is trying to do what he can to change that.

Under the "Tax-Free NY" plan, businesses will be able to operate on, or near, SUNY campuses tax-free.

That means no business or corporation taxes and no sales, property, franchise, or income taxes for owners or employees who do business on the campuses for up to 10 years.

The idea is to attract business from out of state and encourage start-up companies to set up shop on the over 3 million square feet allocated for tax-free communities in the state.

However, not everyone is on board with the tax-free plan.

Some local groups say it penalizes existing small businesses that have to compete with the companies in the tax-free zones.

Also, Texas Governor Rick Perry launching radio ads and on Monday, beginning a tour of the state, encouraging local businesses to relocate to the Lone Star State, where there is no income tax.

But, Governor Cuomo is firing back.

"You can come to Texas and pay no income tax, but our program goes one better," said Cuomo. "You can stay in New York and you don't have to move to Texas."