Senator Joseph Robach today announced a new jobs initiative program designed to improve New York’s business climate, reduce taxes, and help employers create new jobs for workers across the State. He was joined by several business leaders and local employers from our community.
“Job creation across New York should be one of our biggest priorities,” said Senator Robach. “The taxes and fees that were imposed as a result of last year’s budget are making it very difficult for businesses to operate and grow jobs in our community.”
Despite the current state of our economy, last year’s state budget, which Senator Robach voted against, raised taxes on businesses in New York by $3.6 billion. New York lost 269,000 jobs in 2009 and projections show another 40,000 jobs to be lost this year.
Senator Robach’s proposal focuses on four key components:
1. Cap State Spending
2. Job Creation Tax Credit
3. Small Business Tax Freedom Plan
4. Red Tape Moratorium Plan
Senator Robach said passage of a State spending cap is 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.
Senator Robach’s job plan 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. Up to $3,000 in additional credit is available for hiring a New Yorker on unemployment.
The plan also places a freeze 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 increase on small businesses that is scheduled to expire at the end of next year.
Lastly, the plan would enact a moratorium on new business regulations and red tape from state agencies. Any new regulations would have to be approved by the Legislature. A new commission would be established to identify and make binding recommendations on eliminating the most costly and counter-productive regulations.
“PGM is proud to be a local employer here in Rochester and to serve the manufacturing needs of our customers. Any proposal that provides relief from any new taxes and fees for local businesses is welcome and will be of great benefit to the business community and our economy.” - Todd Hockenberger, Corporate Vice President, PGM Corporation
"The Rochester Business Alliance has long called for a cap on state spending and a reduction in taxes and regulations as essential to helping our region's small businesses," said Sandy Parker, President and CEO of the Rochester Business Alliance. "Small businesses are the job creators in our economy, and we have to do everything we can to create an environment in which they can prosper."
“GRE is pleased to support this and all initiatives designed to increase investment and job creation opportunities in New York State. An innovation economy where small entrepreneurial companies can grow and thrive is the future for our region.” - Mark Peterson, President & CEO of Greater Rochester Enterprise
“New York businesses are feeling the pinch of high taxes and increasing regulation. I applaud Senator Robach and his colleagues for tackling these issues and trying to bring some financial relief to small businesses all over our great State.” – Jodie Perry, President & CEO, Greece Chamber of Commerce
“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. This proposal is the right recipe for expanding our economy and deserves bipartisan support in both houses of the Legislature." - Mike Elmendorf, NYS Director, National Federation of Independent Business
“Getting New Yorkers back into the work force and supporting businesses for doing so is a win-win situation,” said Senator Robach. “This incentive will help small businesses grow in our area and hopefully, prevent a business from relocating or shutting down.”
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