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Page 18 The Legislative Gazette February 9, 2010
Senate GOP unveils its own job creation plan
Gazette staff writer
enate Republicans have put forth a
new major jobs initiative they say
would reward businesses with a three-
year tax credit for every new job created.
At a press conference on Jan. 26,
Senate Minority Leader Dean Skelos
and other Senate Republicans unveiled
their initiative, which they say will create
thousands of new jobs, reduce taxes and
improve the overall economic climate.
“Last year New York lost nearly
270,000 jobs, which is approximately
119,000 more than was estimated during
last year’s budget cycle,” said Skelos,
R-Rockville Centre. “This year the
governor is estimating that there will be
an additional loss of 40,000 jobs by the
end of the year. It’s pretty obvious that
New York is hemorrhaging jobs.”
The plan put forth by the Republicans
would provide a tax credit for every
new job created at private businesses,
manufacturers and other private sector
employers. The tax credit would average
$2,500 to a maximum of $5,000 for each
new job for three years. According to
Scott Reif, a spokesman for the Senate
Republicans, after the three-year period, if Gazette Photo by Sara A. Emmert
the tax credit works, it could be extended.
Senate Minority Leader Dean Skelos and other Senate Republicans outline their plan for a new jobs initiative at a press conference. According to
The tax credit would only be provided
Skelos, the plan would create thousands of new jobs for unemployed New Yorkers.
for new jobs that expand total payroll,
equal to the amount of tax withholding
for each new job. For example, a new
Empire Zones needed, says ESDC chair
job paying $30,000 would provide an
employer with a tax credit of about
$1,150. A job paying $50,000 would
By STEPHANIE I. WITKIN Currently there are several small Mullen. “And I mean that with greatest
provide a $2,500 tax credit.
Gazette staff writer private-sector businesses not included respect for communities that are looking
Sen. James Alesi, R-Perinton, ranking
Republican on the Senate’s Committee on
Commerce, Economic Development and
mpire State Development in those categories that Mullen says to revitalize their downtowns.”
Corp. Chairman and CEO currently rely on the Empire Zone Mullen said he knows state funding
Dennis Mullen voiced doubts Program. Several businesses involved is limited, but what is available for
Small Business and its former chairman,
last week as to whether the proposed with the program “absolutely require and economic development should be used
said the simplicity of the Republican’s
Excelsior Jobs Program, because of its need that Empire-Zone-type program … for finance and manufacturing.
plan, is also its strength. “Give businesses
limited nature, would be an adequate Their base is here, they’re anchored Mullen did say he supports the
incentives and the ability to stay and
replacement for New York’s Empire here,” Mullen said. proposed $250 million cap proposed
grow here and then leave them alone as
Zone Program. “The Empire Zone Program tried to do for the Excelsior program.
they try and do so. Instead of repeatedly
Mullen, who spoke at the economic too much,” Mullen said. The program Also under the proposed Excelsior
taxing and regulating them, why not
development joint legislative budget aided small and private businesses to plan, the Empire State Development
reward businesses and manufacturers
hearing Feb. 1, raised concerns about make sure that jobs were not lost and Corp. would merge with the Department
when they create new jobs and give them
the state’s ability, under Gov. David A. established incentives to create jobs. It of Economic Development to form the
incentives to create more.”
Paterson’s 2010-2011 budget proposal, tried to flourish community development New York State Job Development Corp.
Also, due to the fact that businesses and
to keep small businesses in New York, while taking care of restoring buildings The merger is expected to streamline
manufacturers would be receiving a tax
retain and create jobs, and maintain a in downtown areas, he said. service delivery, achieve performance
credit, the program would not require a new
program that is similar to the Empire “If I have the choice to revitalize a improvements, and save the state $4.7
expenditure for the state, the conference
Zone business incentive program that is theater or keep the jobs at Crucible and million annually over the next two
said. “Instead of withholding the tax,” said
set to end in June 2010. I have limited resources, which one do years, according to the Executive
Reif. “They would be in effect, be sent to
Mullen said although the proposed we choose?” Mullen asked. Crucibles Budget summary.
the business that created the job.”
Excelsior program is “the centerpiece Industries is a metal manufacturer. The Empire State Development
“With the unemployment rate at 9
of the most innovative job-creation Mullen also expressed concern that Corp. administers New York economic
percent, the state’s unemployment
agenda in the history of New York,” it there were not enough programs in development programs aimed
costs have dramatically increased and
should be supplemental to the Empire the Executive Budget to help foster at retaining and creating new jobs.
worsened our state’s budget deficit. This
Zone Program. The Excelsior program community growth. Empire has many city-shaping projects
revenue-neutral plan would provide
would create job incentives, but only “We probably need additional programs across the state, including Rochester’s
incentives for businesses to put New
in the fields of high-tech, clean energy, for community development, and they Midtown plaza redevelopment and
Yorkers back to work and take them off
biotechnology and pharmaceuticals. are not in the budget right now,” said Buffalo’s Canal Side projects.
the unemployment rolls, while reducing
unemployment costs to the taxpayer,” said by removing barriers to job growth and zones. To qualify for the Empire Zones $10,000 per new job as a way to cover a
Sen. Michael Ranzenhofer, R-Amherst. giving our citizens hope and opportunity,” Program, the business must also be able portion of the payroll costs.
The proposal applies only to new said Kenneth Adams, president and to provide evidence of its ability to create Also included in the governor’s
jobs and employees who don’t CEO of The Business Council of New new full-time jobs. program is an Investment Tax Credit
currently provide New York with any York State, Inc. “The tax credit for job The Republicans’ proposal is an that would provide a 2 percent return of
payroll revenue. The plan also places a creation and the moratorium on new alternative to the governor’s proposed total qualified investments. The program
moratorium on any new business taxes regulations and taxes on small businesses Excelsior Jobs Program in the Executive would also provide a 10 percent tax
and fees and eliminates the corporate are effective tools to create jobs. New Budget. The Excelsior Jobs Program credit for new investments based on
franchise tax for hundreds of small York has lost hundreds of thousands of would offer job creation and investment the Federal Research and Development
businesses and manufacturers with 50 jobs because the state spends too much incentives to firms in targeted industries credit. The cap put on this program is
or fewer employees and less than $2 and taxes too much. The spending cap such as biotechnology, pharmaceutical, $250 million annually.
million in net income. in this plan is an important fiscal reform high-tech, clean technology, green Currently the Senate Democrats have
The jobs initiative would also prohibit that must be enacted,” technology, financial services and no specific job creation plan of their own
the state from enacting any new regulations The Empire Zones Program, which manufacturing. but their “top priority is to create and
on New York companies, and create a new has received mixed reviews, is set to end Under the governor’s proposed program, provide jobs and provide the tax relief
Berger-style commission that would have in June — a year earlier than originally eligible industries must maintain at least necessary for our long term economic
the power to eliminate regulations that are proposed. The Empire Zones program 50 new jobs in New York for five years sustainability,” said Austin Shafran,
currently hindering businesses. provides several different tax credits to receive tax credits. The tax credits spokesman for the Senate majority
“This plan addresses this vital need to small private businesses in specific are estimated to total between $2,500 to conference.
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