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FACT CHECK: "Dede Scozzafava: Another Albany Scandal"

JUDE SEYMOUR

FRIDAY, OCTOBER 9, 2009

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This is a continuing series that checks the claims of television and radio ads in the 23rd Congressional District race.

Previously:

AD: "Dede Scozzafava: Another Albany Scandal"

OWNER: Democratic Congressional Campaign Committee

TRANSCRIPT: "Another Albany politician? Another scandal. Now it's Assemblywoman Dede Scozzafava - voting for special corporate tax breaks that her own company applied for while raising taxes on you. Scozzafava voted for more taxes and fees 190 times. That's a typical Albany politician for you."

CLAIM: "Now it's Assemblywoman Dede Scozzafava voting for special corporate tax breaks that her own company applied for."

SOURCE: A 'yea' vote for A6845/S3671 (2005), which extended the Empire Zone program for six years. Also, two filings made by Thomas W. Scozzafava, treasurer and chief financial officer of WiseBuys, for Empire Zone certification on behalf of two WiseBuys store - one in Tupper Lake and the second in Hamilton.

CONCLUSION: True

Ms. Scozzafava was a board member and corporate secretary of Wise Buys, until March 2007, according to her personal financial disclosure report and this North Country Public Radio report.

In May 2004, Mr. Scozzafava, the candidate's brother and chief financial officer of WiseBuys, applied for WiseBuys' new Tupper Lake store to be certified as an Empire Zone business. He was approved that September.

In July 2004, Mr. Scozzafava applied for WiseBuys' new Hamilton store to be certified as an Empire Zone business. He was approved in July 2005.

In March 2005, Ms. Scozzafava votes for A6845/S3671, which extends the Empire Zone program for six years. That wasn't the sole purpose of the bill, however. The bill also reduce the corporate franchise tax on small businesses, increased - by $2 million - the amount of low-income housing tax credits given out, allocated an additional $25 million in credits for "green" buildings, extended the sales tax exemption on clothing and footwear, and extended Quick Draw, among several other things.

Does this constitute a scandal? That's for the voter to decide. The Post-Standard wrote an excellent piece in March 2007 about law firms that were taking Empire Zone benefits - often without creating jobs. (No one is disputing that WiseBuys created jobs in New York, incidentally.)

The Post Standard found that state Sen. John DeFrancisco, R-Syracuse, "voted to create the tax breaks that now benefit his (law) firm" - which he started after he left Harris Beach.

Hiscock & Barclay, where Assemblyman Will Barclay, R-Pulaski, is a partner, took Empire Zone benefits - but the story notes they took tax credits only on the actual number of new employees.

When Mr. Barclay ran against Darrel Aubertine in the special 48th Senate District election, Mr. Aubertine's campaign tried to make a scandal out of Mr. Barclay's alleged vote against a bill that would have made law firms inelligible for Empire Zone credits. (That went nowhere.)

"Will Barclay said he understands the concern about the kinds of businesses collecting Empire Zone benefits, but said the program has changed from its original focus on attracting new businesses into a tool for retaining existing ones," the Post-Standard article said. "'If it is offered out there, I think it is reasonable for us to take it,' Barclay said."

Sort of related: Do you know who drafted and negotiated the bill that gave birth to the Empire Zone program? Why, that would be Rob Ryan, Doug Hoffman's spokesman.

CLAIM: "While raising taxes on you, Scozzafava voted for more taxes and fees 190 times."

SOURCE: The assemblywoman's voting record since 2000.

CONCLUSION: False.

It would be true if the DCCC claimed Ms. Scozzafava had voted for extending or raising taxes or fees across the state more than 190 times. Most of the votes they are using, however, are not tax increases. They are extenders, requested by the counties, of sales tax rates.

Here's a sampling of the votes they say show Ms. Scozzafava voted for more taxes:

A 2000 vote to extend a motel/hotel tax in Suffolk County
A 2000 vote to extend Suffolk County's sales tax rate
A 2000 vote that allowed Nassau County to continue a three-quarters of one percent room tax
A 2001 vote to extend Cortland County's sales tax
A 2001 vote to allow Albany County to extend its sales tax.
A 2003 vote to extend Cortland County's sales tax
A 2003 vote to extend Herkimer County's sales tax
A 2003 vote to extend Greene County's sales tax

I think you get the point.

REACTION TO THE AD

Paul Lindsay, National Republican Congressional Committee spokesman: “Bill Owens is fond of dreaming up jobs that he didn't create, and now his Washington allies are concocting false charges against Dede that have already been disproven by media outlets in New York. If anyone wants to know about special corporate tax breaks, they should look no further than the sordid career that Owens has made for himself as a lawyer defending them."

Mr. Lindsay then provided the following documentation, which I have not fact-checked and therefore can't substantiate.

"Glenn T. Suddaby, United States Attorney for the Northern District of New York, announced that Paul W. Passino pled guilty today before United States District Judge David N. Hurd in Utica to two counts of aiding and assisting in the preparation of false and fraudulent federal income tax returns for others, and one count of making and subscribing a false federal income tax return for himself and his spouse. (Press release, 'Peru Man Pled guilty to Two Counts of Aiding, Assisting in Preparation of False, Fraudulent Federal Income Tax Returns for Others,' U.S. Department of Justice's U.S. Attorney's office, June 8, 2006)

"In September 2006, Bill Owens (D-N.Y.) and his law firm wrote a letter to the supervising officer asking the court that Passino serve no jail time for his crime but to find another appropriate sentence. (William L. Owens, Letter to Supervising U.S. Probation Officer: Mr. Craig F. Penet, 1:06-cr-00191, Sept. 19, 2006)

"'We are thus asking that the Court not sentence Mr. Passino to a term of incarceration, but find another appropriate sentence.' (William L. Owens, Letter to Supervising U.S. Probation Officer: Mr. Craig F. Penet, 1:06-cr-00191, Sept. 19, 2006)

"According to U.S. District Court documents, on Oct. 5, 2006, 'William L. Owens, Esq. at Stafford, Owens, Curtin & Trombley, PLLC, One Cumberland Avenue, P.O. Box 2947, Plattsburgh, new York 12901 (518) 561-4400 be substituted as the attorney of record for the undersigned party in the above-entitled action in place and stead of the undersigned attorney as the date hereof.' (United States of America v. Paul W. Passino, U.S. District Court Northern District of New York: Consent to change attorney, 1:06-cr-00191, Oct. 5, 2006)"