Young's Job Initiative Gets Backing
ALBANY – Senator Catharine Young’s major new jobs initiative designed to improve New York's business climate, reduce taxes, and create thousands of new jobs for workers across the State has received the backing from the State’s leading business advocacy organizations.
The plan's centerpiece would reward businesses with a three-year tax credit, averaging between $2,500 and $5,000 for every new job created. It would also eliminate taxes for small businesses and manufacturers that pay the state’s corporate franchise tax and roll back the income tax surcharge placed on them last year in the budget by New York City-controlled legislators. It also places a moratorium on new taxes, fees and regulations that are killing private sector job-creation efforts in the state.
“This plan will get people back to work and will help turn around the economy,” said Sen. Young. "We need to think creatively and act swiftly, and I believe this plan will accelerate our recovery and give businesses the confidence they need to create jobs.”
“Last year, New York lost 269,000 jobs statewide while this year, Governor Paterson’s budget projects that another 40,000 jobs will be lost. During the worst economic downturn in recent history, Governor Paterson and downstate-controlled majorities in both houses, forced through record tax and spending hikes. The tax burden on businesses rose by $3.6 billion,” said Sen. Young.
“We need to grow our way out of this economic downturn, but Albany has made it impossible for manufacturers and small business to create and retain jobs. Businesses continue to leave New York State because the government spends too much and taxes too much. We need to go in a different direction so that we have a brighter future,” said Sen. Young.
The newly announced jobs plan backed by Senator Young, would provide a refundable tax credit averaging $2,500 up to a maximum of $5,000 to businesses, manufacturers and other private sector employers for every new job they create. The tax credit would be recurring for three years and would only be provided for new jobs that expand total payroll, equal to the amount of tax withholding for each new job.
For example, a new job paying $30,000 would provide an employer with a tax credit of about $1,150. A job paying $50,000 would provide a $2,500 tax credit. The proposal is cost-neutral to the state because it applies only to new jobs and employees that don’t currently provide New York with any payroll revenue.
That credit could grow by as much as an additional $3,000 per job if new hires are taken from the ranks of the unemployed who are collecting unemployment insurance from the State. Such an incentive would help reduce unemployment and the costs borne by taxpayers.
“We can and must encourage employers to start hiring and capitalize on new opportunities. I can’t think of a better way to create and build jobs than to give businesses the tools and incentives they need to grow,” added Sen. Young.
The plan also places a moratorium on any new business taxes and fees and eliminates the corporate franchise tax for hundreds of small businesses and manufacturers with 50 or fewer employees and less than $2 million in net income. It also accelerates the phase-out of the Personal Income Tax (PIT) increase on small businesses that is scheduled to expire at the end of next year.
The jobs initiative would also prohibit the State from enacting any new regulations on New York companies, and create a new Berger-style commission that would have the power to eliminate regulations which currently are hindering businesses.
Sen. Young said passage of a State spending cap is also key to the State’s efforts to create jobs, arguing that putting the brakes on wasteful spending is critical to ensure the resources necessary to invest in important job creation and tax cutting efforts in the future.
“We need to keep Albany from enacting massive unsustainable spending that is killing job growth. A spending cap is absolutely the right thing to do for the future well being of this State,” said Sen. Young.
“In his budget, Governor Paterson cuts in half funding currently targeted for job creation. He also calls for new tax credits for creating jobs. However, the requirements on businesses are highly restrictive, and he caps the program. As a result, the Governor’s own Budget Division estimates that fewer than 50 companies might benefit each year. That’s not enough,” she said.
According to the latest statistics, the bulk of the state’s job losses have been outside of New York City in regions such as Central and Western New York, the North Country, Hudson Valley and Long Island. In the Southern Tier, there was nearly an 11% drop in private sector employment from 2008 to 2009.
If enacted, the Sen. Young’s plan would provide a much-needed, shot-in-the-arm for New York's stagnant economy.
Sen. Young has started a petition drive to give her constituents an opportunity to show their support for the plan. The petition can be accessed by visiting her website at www.young.nysenate.gov, or by calling her district office, toll-free, at 1-800-707-0058.
Business groups were quick to weigh in with praise for the Senate Republican plan.
“Private sector job creation needs to be New York’s highest priority. This plan addresses this vital need by removing barriers to job growth and giving our citizens hope and opportunity. The tax credit for job creation and the moratorium on new regulations and taxes on small business are effective tools to create jobs. New York has lost hundreds of thousands of jobs because the state spends too much and taxes too much. The spending cap in this plan is an important fiscal reform that must be enacted,” said Kenneth Adams, president and CEO of The Business Council of New York State, Inc.
"Small business is the engine that drives most job creation in our economy--and that will grow us out of this economic mess. Lowering New York's second worst in the nation business tax climate and cost of doing business is really what small business needs to survive and grow, and that's exactly what this job creation plan will do. The proposal put forth today by the Senate Republican Conference is the right recipe for expanding our economy and deserves bipartisan support in both houses of the Legislature," said Mike Elmendorf, New York State Director of the National Federation of Independent Business (NFIB), New York's leading small business advocacy association.
The plan's centerpiece would reward businesses with a three-year tax credit, averaging between $2,500 and $5,000 for every new job created. It would also eliminate taxes for small businesses and manufacturers that pay the state’s corporate franchise tax and roll back the income tax surcharge placed on them last year in the budget by New York City-controlled legislators. It also places a moratorium on new taxes, fees and regulations that are killing private sector job-creation efforts in the state.
“This plan will get people back to work and will help turn around the economy,” said Sen. Young. "We need to think creatively and act swiftly, and I believe this plan will accelerate our recovery and give businesses the confidence they need to create jobs.”
“Last year, New York lost 269,000 jobs statewide while this year, Governor Paterson’s budget projects that another 40,000 jobs will be lost. During the worst economic downturn in recent history, Governor Paterson and downstate-controlled majorities in both houses, forced through record tax and spending hikes. The tax burden on businesses rose by $3.6 billion,” said Sen. Young.
“We need to grow our way out of this economic downturn, but Albany has made it impossible for manufacturers and small business to create and retain jobs. Businesses continue to leave New York State because the government spends too much and taxes too much. We need to go in a different direction so that we have a brighter future,” said Sen. Young.
The newly announced jobs plan backed by Senator Young, would provide a refundable tax credit averaging $2,500 up to a maximum of $5,000 to businesses, manufacturers and other private sector employers for every new job they create. The tax credit would be recurring for three years and would only be provided for new jobs that expand total payroll, equal to the amount of tax withholding for each new job.
For example, a new job paying $30,000 would provide an employer with a tax credit of about $1,150. A job paying $50,000 would provide a $2,500 tax credit. The proposal is cost-neutral to the state because it applies only to new jobs and employees that don’t currently provide New York with any payroll revenue.
That credit could grow by as much as an additional $3,000 per job if new hires are taken from the ranks of the unemployed who are collecting unemployment insurance from the State. Such an incentive would help reduce unemployment and the costs borne by taxpayers.
“We can and must encourage employers to start hiring and capitalize on new opportunities. I can’t think of a better way to create and build jobs than to give businesses the tools and incentives they need to grow,” added Sen. Young.
The plan also places a moratorium on any new business taxes and fees and eliminates the corporate franchise tax for hundreds of small businesses and manufacturers with 50 or fewer employees and less than $2 million in net income. It also accelerates the phase-out of the Personal Income Tax (PIT) increase on small businesses that is scheduled to expire at the end of next year.
The jobs initiative would also prohibit the State from enacting any new regulations on New York companies, and create a new Berger-style commission that would have the power to eliminate regulations which currently are hindering businesses.
Sen. Young said passage of a State spending cap is also key to the State’s efforts to create jobs, arguing that putting the brakes on wasteful spending is critical to ensure the resources necessary to invest in important job creation and tax cutting efforts in the future.
“We need to keep Albany from enacting massive unsustainable spending that is killing job growth. A spending cap is absolutely the right thing to do for the future well being of this State,” said Sen. Young.
“In his budget, Governor Paterson cuts in half funding currently targeted for job creation. He also calls for new tax credits for creating jobs. However, the requirements on businesses are highly restrictive, and he caps the program. As a result, the Governor’s own Budget Division estimates that fewer than 50 companies might benefit each year. That’s not enough,” she said.
According to the latest statistics, the bulk of the state’s job losses have been outside of New York City in regions such as Central and Western New York, the North Country, Hudson Valley and Long Island. In the Southern Tier, there was nearly an 11% drop in private sector employment from 2008 to 2009.
If enacted, the Sen. Young’s plan would provide a much-needed, shot-in-the-arm for New York's stagnant economy.
Sen. Young has started a petition drive to give her constituents an opportunity to show their support for the plan. The petition can be accessed by visiting her website at www.young.nysenate.gov, or by calling her district office, toll-free, at 1-800-707-0058.
Business groups were quick to weigh in with praise for the Senate Republican plan.
“Private sector job creation needs to be New York’s highest priority. This plan addresses this vital need by removing barriers to job growth and giving our citizens hope and opportunity. The tax credit for job creation and the moratorium on new regulations and taxes on small business are effective tools to create jobs. New York has lost hundreds of thousands of jobs because the state spends too much and taxes too much. The spending cap in this plan is an important fiscal reform that must be enacted,” said Kenneth Adams, president and CEO of The Business Council of New York State, Inc.
"Small business is the engine that drives most job creation in our economy--and that will grow us out of this economic mess. Lowering New York's second worst in the nation business tax climate and cost of doing business is really what small business needs to survive and grow, and that's exactly what this job creation plan will do. The proposal put forth today by the Senate Republican Conference is the right recipe for expanding our economy and deserves bipartisan support in both houses of the Legislature," said Mike Elmendorf, New York State Director of the National Federation of Independent Business (NFIB), New York's leading small business advocacy association.
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