ALBANY, 03/08/13 -- State Senator James L. Seward (R/C/I – Oneonta) today unveiled the “Senate Republican Blueprint for Jobs: ReThink. ReVitalize. ReBuild.” The job creation plan would cut taxes for one million small businesses and reduce energy costs for every business and residential ratepayer in New York, saving them $2.5 billion.
“When I announced my legislative priorities for 2013, job growth was at the top of the list. The ‘Senate Republican Blueprint for Jobs’ will help accomplish my goal and continue recent efforts to enhance our climate for economic development statewide,” said Senator Seward. “The plan includes meaningful measures that will help employers expand while better preparing employees for the evolving job market.”
The “Senate Republican Blueprint for Jobs” plan would provide:
• A tax cut for one-million small businesses;
• Tax relief for manufacturers;
• Lower energy bills for every New Yorker and every business;
• Sweeping reforms to cut red tape and bureaucracy;
• Job training to help New Yorkers secure good, high-paying jobs;
• Commonsense budget reforms;
• Investment funding to help launch start-ups;
• Incentives to revitalize downtowns and Main Streets;
• Help for New York’s veterans to secure good-paying jobs;
• Key reforms to reduce the cost of doing business.
“Streamlining regulatory requirements, lowering energy costs, and cutting taxes will mean a healthier bottom line for our small businesses and manufacturers, and in turn, more jobs for New Yorkers. Taking these steps will also send out a true signal, above and beyond advertising campaigns, that New York is a business-friendly state,” Seward added.
Business groups from across the state are heartily endorsing the “Senate Republican Blueprint for Jobs” plan.
Heather Briccetti, President and CEO of The Business Council of New York State, Inc. said, "The budget plan put forth today by the senate Republicans is clearly designed to control state spending and create good-paying jobs. If we are to improve the state's economy and create more private-sector jobs we need to reduce the cost of doing business in New York through tax cuts, fiscal restraint, regulatory reform, and targeted investments in our workforce. ”
Brian Sampson, Executive Director of Unshackle Upstate said: “Unshackle Upstate has long advocated for lowering the tax burden in order to help our upstate manufacturers and small business owners. This proposal advances sensible tax cuts, the elimination of the surcharge on the 18-A energy tax, the repeal of the Wage Theft Prevention Act’s annual notification requirement and the implementation of a state spending cap. We support these measures as they will help boost job growth and strengthen our economy. ”
Mike Durant, State Director of the National Federation of Independent Business (NFIB) said: “This job creation plan injects significant fiscal relief for small business and is a commitment to drastically changing the economic trajectory of New York. It incorporates many of the top legislative priorities for NFIB by drastically reducing taxes and providing needed regulatory reform. This is exactly what small business needs in this state.”
Manufacturer’s Association of Central New York (MACNY) President Randy Wolken stated: "This past week, manufacturers from across the state convened in Albany to let legislators know that in order to strengthen our critical sector and the economic strength we provide, a better business climate is needed, with lower costs of doing business. Senate Republicans clearly heard this message. With their proposal of a repeal to the 18a tax, in addition to elimination of the corporate franchise tax for manufactures, they are clearly proposing a budget version that is business friendly, helps create a better business climate, and creates a platform that will enable manufacturers and businesses help get our state back on track."
“By partnering with Governor Cuomo over the last two years, several new job creation programs were approved and are starting to pay dividends. Infrastructure improvements, lower energy costs and reinvestments in our SUNY schools are some of the recent wins. Following the ‘Blueprint for Jobs’ will build on our progress and help tap our state’s full potential for economic success,” Seward concluded.
The “Senate Republican Blueprint for Jobs” includes:
A TAX CUT FOR ONE MILLION SMALL BUSINESSES
> Eliminate Corporate Tax entirely for 200,000 small businesses over the next four years ($250 million).
> Provide a 10-percent Personal Income Tax (PIT) exemption for business income by 2016 ($120 million) for 800,000 small businesses that pay personal income taxes.
BOOSTING NEW YORK’S MANUFACTURERS
> Eliminating the Corporate Tax entirely for manufacturers over the next three years, saving them $445 million.
> Increasing Sales Tax Relief for Manufacturers – While the state provides certain sales tax breaks on the energy used in the manufacturing process, the current law imposes cumbersome restrictions that can actually make manufacturers less efficient. The Blueprint for Jobs would reform, broaden and improve the current law, to help manufacturers substantially increase their sales tax savings.
LOWER ENERGY BILLS FOR EVERY NEW YORKER
> To help New York’s energy intensive manufacturers, the senate’s plan rejects the governor’s proposal to extend the 18-a energy tax surcharge and restores the 18-a assessment back to its pre-2009 level. This would provide over $2.5 billion in relief to families and employers across New York over the next five years.
> According to figures from National Grid, the impact of the governor’s proposed energy tax extension on a typical large business is estimated at $30,000 per year. The added cost on a typical small business would be about $540 per year. Average household utility bills would increase $55 per year.
CUTTING RED TAPE
> Repeal at least 1,000 job-killing rules and regulations. The legislation is modeled on a successful effort in the state of Florida that ultimately led to more than 3,000 regulations and rules being identified for repeal and/or revision.
> Industry-specific regional roundtables will be held to gather input from business leaders regarding specific rules and regulations that should be considered for revision.
> A constitutional amendment that would empower the legislature to exercise veto power over any new regulations that negatively impact job creation and retention efforts. The Administrative Regulations Review Commission (ARRC) would conduct regular reviews and make recommendations to the full Legislature.
ACCESS TO JOB TRAINING OPPORTUNITIES FOR ALL NEW YORKERS
> Fast Start-NY: Based on the successful “ready-workforce” programs used in a number of states, this initiative will help attract and retain tens of thousands of jobs by providing comprehensive, targeted training that is specifically tailored to meet the needs of individual employers. In recent years, these types of customized, employer-specific programs have helped states such as South Carolina, Georgia, Louisiana and Alabama attract major manufacturers like Mercedes Benz, Boeing, Caterpillar, Honda, KIA and others.
> Double Funding For Workforce Training: SUNY and CUNY’s Workforce Development Initiative provides targeted training to help employers refine the skills of their new hires, and enable more experienced employees to upgrade their skills. These programs have proven highly successful, but the demand for them in some communities is currently outstripping their availability. The “Blueprint For Jobs” would double funding -- from $3.8 million to $7.6 million -- to increase access to the programs.
> The Workforce Development Institute is a not-for-profit that works with businesses and the AFL-CIO to provide focused training for workers, and workforce transition support to help prevent jobs from being outsourced to other states. In the 2012-13 state budget the senate worked to provide $2.3 million in funding for the WDI. The “Blueprint For Jobs” would double funding levels to $4.6 million.
FUNDAMENTAL FISCAL REFORMS TO CONTROL TAXES AND SPENDING
> Impose a two-percent cap on state spending.
> Help prevent future tax increases by requiring a 2/3 super-majority vote for the approval of any tax increases.
> Provide $100 million in new low-interest loan funding to promising new high-tech and small business start-ups.
> Make improvements to the state’s current Linked Deposit Loan Program, expanding access to the program, generating additional economic activity, and stimulating more investment and more jobs across the state.
> Strengthen the Excelsior Jobs Program, by increasing the amount of the program from $50 million to $70 million per year, enhancing the investment tax credit and the real property tax credit, and amending the job creation and retention thresholds.
> Create the New York State Incubator Program ($5 million). There are currently over 40 business incubators across the state. This program would provide operating grants to these incubators to provide support services to start up businesses, and to facilitate the transfer of technology from research and development to commercialization.
TURNING EMPTY BUILDINGS INTO NEW OPPORTUNITIES
> In order to encourage private sector investments in hometowns, downtowns and Main Streets across the state, the “Blueprint for Jobs” would expand the Historic Properties Tax Credit Program by incrementally increasing the cap on credits from $5 million to $12 million.
>The “Blueprint for Jobs” also includes legislation establishing a tax credit for the rehabilitation of distressed commercial properties.
HELPING OUR HEROES
>A tax credit to any business that hires a veteran returning home from military service. That credit will equal 10 percent of wages paid -- increasing to 15 percent of wages if the veteran is also disabled. New York’s heroic servicemen and women should be welcomed home with the promise of economic opportunity.
>Assist small businesses owned by service disabled veterans by increasing their access to government contracts.
CURBING THE COST OF UNEMPLOYMENT INSURANCE AND WORKERS’ COMPENSATION
>High unemployment insurance and workers’ compensation costs are frequently cited by New York employers as major barriers to new job creation. The senate Republican conference is committed to reducing these costs to help make our state a more attractive place to do business.
>The governor has submitted constructive proposals to help address these costs, and the senate Republican conference will work together with him and our legislative colleagues to reach consensus on reform legislation that can be enacted during this year’s session.