The recently enacted New York State budget featured a host of revenue-enhancing measures, include tax hikes on businesses and corporations. Thomas R. Fazio, Partner, Blodnick Fazio & Clark, says the increase in the corporate franchise tax — which is part of the budget — will result in more companies making their way out of the Empire State and leaving their workers behind.

On April 6, the New York State Legislature reached an agreement on its $212 billion budget with Governor Andrew Cuomo. As part of the budget, the state will raise the corporate franchise tax from 6.5% to 7.25% for the next three years. This applies to businesses with incomes above $5 million.

According to the state, between the tax increases on business income and a raise in the capital base method of liability estimation — which exempts certain manufacturers and emerging technology companies, as well as cooperative housing corporations — it is expected to take in $1.75 billion in revenue by 2023. But Mr. Fazio says the economic benefits may be wiped out if companies decide to move to states with lower corporate tax burdens.

“The government cannot collect any revenue from these companies if they move out of the state,” Mr. Fazio says. “The workers will be hurt the most. They may wind up losing their jobs because they can’t afford to relocate. Like their employers, they are saddled with heavy tax obligations. If your company is about to face these tax hikes and looking to retain its workforce, consult a business law attorney immediately.”

For more information, call (516) 280-7105, or visit www.bfclaws.com.

###

About Blodnick Fazio & Clark

Blodnick Fazio & Clark is a boutique law firm specializing in handling complex litigation, corporate formations, structure and finance; construction law; medical professional licensing, corporate practice of medicine issues; real estate law; arbitration and mediation; matrimonial law; employment law; and municipal and school law. Its staff of attorneys has more than 100 years of combined experience and is admitted to practice in Courts of New York, New Jersey and Florida, including the Eastern and Southern District Courts of New York; New Jersey federal courts; the Federal Court of Claims; the First, Second, Fourth and Federal Circuit Courts; and the U.S. Supreme Court. The firm is located in Garden City, New York. For more information, call (516) 280-7105, or visit www.bfclaws.com.

Thomas R. Fazio, Partner, Blodnick Fazio & Clark, says New York State Governor Andrew Cuomo should afford all businesses in the state the same protections that hospitals and doctors received against frivolous lawsuits during the coronavirus pandemic. He also says there are federal and state lawsuits being filed elsewhere and legal action can destroy small businesses that have already seen a loss of income during the lockdown.

 

In March, Governor Cuomo enacted an executive order that protected hospitals and doctors from lawsuits as they continue to treat patients with the coronavirus. As part of the order, plaintiffs must prove incidences of either gross negligence or an egregious deviation from the standard of care. Now, 19 business groups have signed a letter with the Lawsuit Reform Alliance of New York asking the governor to protect them from any legal action that they may face as a result of the pandemic.

 

Some of the groups include the Real Estate Board of New York, the New York City Hospitality Alliance and the Partnership for New York City. Of these 19 organizations, five of them are part of the governor’s New York Forward Advisory Board, which provides guidance on reopening the state.

 

“I am urging the governor to protect the companies in our state during this time,” Mr. Fazio says. “Already, they are seeing a flood of lawsuits filed by their employees over poor working conditions. This lockdown has resulted in many businesses closing their doors; those that remain open are struggling to do so. Frivolous legal action might result in a complete shutdown of every shop, restaurant and corporation in New York State.”

 

Mr. Fazio says companies can implement preventive measures in the workplace to avoid facing litigation. “Some commonsense steps businesses can take include insisting that employees, vendors and customers follow social distancing guidelines, wear personal protective equipment and clean the premises as often and as thoroughly as possible,” he says. “If you believe you are facing a lawsuit in the future, contact a commercial litigation attorney as soon as possible to start compiling your defense.”

 

For more information, call (516) 280-7105, or visit www.bfclaws.com.

 

###

 

About Blodnick Fazio & Clark

Blodnick Fazio & Clark is a boutique law firm specializing in handling complex litigation, corporate formations, structure and finance; construction law; medical professional licensing, corporate practice of medicine issues; real estate law; arbitration and mediation; matrimonial law; employment law; and municipal and school law. Its staff of attorneys has more than 100 years of combined experience and is admitted to practice in the Courts of New York, New Jersey and Florida, including the Eastern and Southern District Courts of New York; New Jersey federal courts; the Federal Court of Claims; the First, Second, Fourth and Federal Circuit Courts; and the U.S. Supreme Court. The firm has locations in Garden City and Babylon, New York. For more information, call (516) 280-7105, or visit www.bfclaws.com.