Ken Blankenbush, Republican of Black River who represents the 122nd “Foothills” Assembly District, is in agreement with Democratic Governor Andrew Cuomo’s view that a surtax on high income taxpayers in New York should not be extended.

“The millionaire’s tax is simply a tax on business, whether the taxing thresholds are set at $200,000 or $1 million. This tax is just one more reason why New York state is the most unfriendly state to do business nationwide,” says Blankenbush.

But Assemblywoman Addie Russell, a Democrat from Theresa and the 118th “River” District, says she supports a compromise that would retain the surtax on the highest-income New Yorkers.

“When it comes to the so-called ‘millionaire’s tax,’ there is room for discussion: Some want to extend it for up to two years, while others have vowed to eliminate it altogether. I think the solution lies somewhere in the middle,” she says.

“I support a millionaire’s tax compromise that keeps our commitment that the surcharge will be temporary and that it is a ‘millionaire’s’ tax. I support extending the tax through the remainder of the state fiscal year and making it only apply to those earning $1 million and above,” Russell said.

A statement from Blankenbush’s office explains that the tax provision, part of the 2009-10 State Budget, temporarily imposed an income tax surcharge on higher-income New Yorkers by creating two income tax tiers from 2009 to the end of 2011. The first tier, on income from $200,000 to $300,000, but below $500,000 depending on one’s filing status, increases the personal income tax by 14.6 percent. The second tier, imposed on all taxpayers with a personal income above $500,000, increases their income tax by 20.9 percent.

“The so-called millionaire’s tax impacts the heart of our upstate economy: small business owners—from dairy farms to mom and pop shops,” Blankenbush says.

“At a time when the state needs to focus on economic development and retaining and creating jobs, this tax only serves to drive more business out of New York state,” Blankenbush argues.

“If we are going to call it the ‘millionaires tax’ then let’s actually make it a tax on millionaires,” says Russell.

“The tax currently applies to New Yorkers making more than $200,000 per year and families making $300,000. Folks making $200,000 are very well off but they are not millionaires,” says Russell. “I believe compromise is the best approach, and the millionaire’s tax is no different.”

Blankenbush puts forward the argument that “individuals in higher income brackets often use their income to fund further business ventures, creating more jobs and generating more capital which stimulates the economy. Increases in taxes in these higher income brackets will not only hurt businesses already in operation, but will stunt this entrepreneurial spirit and the potential for new business growth.”

Gov. Cuomo has opposed the extension of the surtax.