Plan in Senate Budget Proposal Would Create Jobs, Cut Taxes and Control State Spending
State Senator Mike Nozzolio today announced that he and his colleagues in the New York State Senate have developed a State budget proposal that will implement an unprecedented job creation plan which includes significant tax relief, sweeping measures to control State spending, and other reforms to attract new businesses and employers to our State. The 2012 NEW JOBS-NY Job Creation Plan will be included in the Senate budget resolution to be acted on next week.
“My Senate colleagues and I are continuing to work with Governor Cuomo to adopt the first budget in State history that, for the second year in a row, reduces overall spending and once again avoids tax increases. Now, we are taking another major step forward in addressing the most pressing challenge in New York’s economic recovery- the creation of new jobs,” said Senator Nozzolio. “The New Jobs-NY plan will build on the historic progress we achieved during last year’s Legislative Session by creating thousands of new jobs through cutting taxes, controlling spending and making New York more economically competitive.”
Highlights of the Senate’s job creation plan, which is being strongly supported by statewide pro-taxpayers, pro-jobs organizations such as Unshackle Upstate, the National Federation of Independent Businesses and the Business Council of New York include:
· STATE SPENDING CAP: The Senate’s budget resolution will cap the growth of State spending at 2 percent or to the rate of inflation to ensure future State budgets will be held to the same standard of fiscal accountability the Senate worked to restore over the past year.
· MORATORIUM ON NEW TAXES: Just like last year’s budget, the State Senate’s 2012-13 budget proposal is balanced entirely through spending cuts and contains NO new or increased taxes or fees.
· CONSTITUTIONAL AMENDMENT TO HELP PREVENT TAX INCREASES: This Constitutional Amendment would require a two-thirds “super majority” vote, rather than a simple majority, in order to adopt any tax increase – making it far more difficult to raise taxes.
· NEW JOB CREATION TAX CREDITS: The Senate’s plan offers incentives for employers to expand their workforce by establishing a tax credit of up to $5,000 for every NEW job created, and up to $8,000 if the job is filled by someone who is collecting unemployment. The plan also helps New York’s heroic servicemen and women find job opportunities by creating an enhanced credit of up to $10,000 per year to any business that hires a veteran returning from military service.
· TAX RELIEF FOR SMALL BUSINESSES: The Senate’s budget resolution cuts corporate taxes by 20 % for small businesses and provides a 10 % income tax credit for small businesses with an income of less than $250,000.00.
· ELIMINATE THE UTILITY TAX HIKE: In 2009, when New York City legislators controlled State government, they forced through a disastrous 2 % surcharge on utility bills that has cost families and businesses over $1.2 billion. The Senate’s budget proposal would repeal this outrageous, job-killing energy tax.
· TUITION RELIEF FOR MIDDLE INCOME FAMILIES: Increases the current tax deduction for tuition by over $3,000 and raises the maximum tuition tax credit.
“These critical initiatives will fulfill the commitment I made to the taxpayers of our region to limit State spending and taxes and to facilitate private sector job growth,” said Senator Nozzolio. “Once the State Senate adopts our Budget Resolution, I look forward to working with the Governor and the State Assembly to help make these important measures a reality. New York has come a long way in the past year. By working together, I have no doubt that we can accomplish even more – especially in the key areas of job creation and economic growth.”