By: Michael H. Ranzenhofer
With the State Budget now passed, jump-starting New York’s economy and getting people back to work are at the top of the to-do list. Every new job created is one step closer to a stronger economy and greatly impacts a family’s quality of life. That’s why I have been working to enact the 2012 NEW JOBS-NY Job Creation Plan.
While the legislation has passed in the State Senate, it is still awaiting action in the State Assembly. This job creation plan would deliver $624 million in tax relief to small businesses and manufacturers, and reduce energy costs by $522 million to make our State more economically competitive:
Eliminate taxes on manufacturers. Over a three-year period, the legislation would provide manufacturers throughout New York State with $495 million in tax relief – phasing out the taxes paid under the State’s Corporate Franchise Tax and Personal Income Tax.
Cut corporate taxes by 20 percent for small businesses. The plan would provide small businesses with a 20 percent reduction by cutting the “small business corporate tax rate” from 6.5 percent to 5.2 percent. This $49 million tax cut would impact almost 200,000 small businesses.
Provide tax credits for small businesses. The plan would also provide a 10 percent tax credit for about 800,000 small businesses with at least one employee; income of less than $250,000; and that file under the personal income tax. This tax credit would help encourage new job creation by saving small businesses $80 million.
Eliminate 500 percent energy tax hike. In 2009, a 500 percent hike in the 18a assessment on utility bills forced companies to send more money to the State, instead of creating new jobs. As a result, this tax spike drained $1.7 billion from the economy. Accelerating the phase-out of this tax hike by one year, from 2014 to 2013, would deliver $522 million in tax relief.
Encourage companies to create new jobs. The “HIRE-NOW-NY” program – modeled after one of my bills in the State Senate – would provide new, job-creating incentives to grant businesses a tax credit of up to $5,000 for each new job created; up to an $8,000 credit if the new job goes to someone on unemployment; and up to a $10,000 credit if a business hires a returning military veteran.
Each of these measures are supported by business organizations across the State, including the Business Council of New York, Unshackle Upstate and the National Federation of Independent Businesses.
Over the last two years, we’ve enacted two fiscally responsible State Budgets that reduced spending, did not include any new taxes or fees and enacted billions of dollars in tax cuts. The 2012 NEW JOBS-NY Job Creation Plan will build on this progress, create thousands of new jobs and help to ensure a brighter, stronger future for the Empire State.
Senator Ranzenhofer's monthly column appeared in the Amherst, Clarence and Ken-Ton Bee newspapers on Wednesday, June 20, 2012.