NEW Yorkers want job security today, financial security tomorrow and opportunities for their children and grandchildren in the future. We need real solutions to to revitalize our communities, create new jobs and encourage young people to stay in New York. That’s why I recently announced a new economic-development plan to make better use of the funds now dedicated to Empire Zones.
The Empire Zone program, now set to end in 2011, has been the state’s main economic-development tool for many years. It’s had many successes, but has also been criticized for not being fair or accountable. Businesses outside the targeted zones want a level playing field when it comes to state economic-development incentives.
The program was created to alleviate high taxes on businesses, so it makes sense to let it expire so we can use the funds to lower taxes on businesses all across the state.
The broad-based tax reduction under this plan should boost small businesses – the engine driving New York’s economy. We’d cut the corporate-franchise tax in half the first year for small businesses – and completely eliminate it for small manufacturers in the second year.
The plan also provides tax incentives to manufacturers that are directly tied to the number of jobs they create and the personal income taxes that those jobs generate. And it cuts burdensome government red tape, too.
On top of this, the plan includes measures to help small businesses access capital loans, to expand the underused Healthy New York program so more businesses can buy low-cost health insurance for employees, and to encourage private investment in community-revitalization projects.
We’d also help students afford higher education through a low-cost student loan program and offer tax credits to offset the cost of those loans for people who stay and work in New York for 10 years after graduation.
New York faces extremely difficult economic times and a large budget deficit. So our plan doesn’t increase state spending but only redirects existing funds from the Empire Zone program to better, more effective ways to create jobs. It will generate more business, more jobs and more tax revenues to help us erase the state budget deficit.
This plan is a commonsense first step that will provide new job opportunities, create a climate friendlier to business and build a strong, vibrant economy throughout the state.
Dean Skelos is the state Senate majority leader.