Plan Would Give Tax Credits to Businesses Which Create Job, Enact State Spending Cap to Help Improve Overall Economic Climate
New York State Senator Charles J. Fuschillo, Jr. (R-Merrick) today announced a new plan to help create jobs for local residents and provide desperately needed relief for small business owners.
“Putting people back to work is the best way to help our economy improve. This plan would help create new jobs by giving small businesses financial incentives and reducing their tax burden. With Long Island losing over 44,000 jobs last year alone, this plan is absolutely vital to our economic recovery,” said Senator Fuschillo.
The job creation and tax relief initiative would help local small businesses create jobs by lowering business costs and giving them financial incentives to hire new employees. In addition, the plan would provide attractive incentives for new companies to relocate to New York, bringing additional jobs for local residents.
The plan would:
* Provide Tax Credits for Creating New Jobs: Give New York employers a recurring three-year tax credit of up to $5,000 for every new job created. Credit would be equal to amount of tax withholding for each new job, up to a maximum of $5,000. Credit would apply only to new jobs that expand total payroll. The credit could increase by as much as an additional $3,000 per job if the new hires are taken from the ranks of the unemployed who are collecting state unemployment funds. This incentive would help reduce unemployment costs to the state, saving taxpayers money.
* Reduce Taxes on Small Businesses: Lower the cost of doing business in New York State by providing business tax relief. Plan would create a five year moratorium on any new taxes or fees on small businesses and manufacturers and accelerates the phase-out of the personal income tax increase on small businesses that is scheduled to expire at the end of next year. In addition, the plan eliminates the corporate franchise tax for small businesses which have 50 employees or less and a net income of less than $2 million. Reducing costs will help small businesses grow and create jobs for local residents.
* Cut the Red Tape: To help reduce bureaucratic red tape on small businesses, the plan would place a moratorium on new business taxes, fees, and regulations from state agencies. Plan would also create a new commission to identify and make recommendations about ways to streamline and/or eliminate the most costly and counter-productive regulations.
* Enact a Cap on State Spending: The plan would impose a constitutional cap on state spending to help ensure the state lives within its fiscal means, which will improve the state’s overall economic climate. Senator Fuschillo has repeatedly called on Albany to enact a state spending cap. Governor Paterson has also advocated for a state spending cap.
Senator Fuschillo is urging Governor Paterson to adopt the measure.