Today the New York State Senate Republicans released their plan to create jobs in New York. Their plan?
State Senate Republicans this morning unveiled a sweeping package of tax breaks and changes to the state's Empire Zone program in an effort to spur job growth and make New York businesses more competitive.
The program would reduce state taxes on manufacturers by $130 million a year by providing tax credits for new jobs that are created. It also would offer tax credits for job training and new investments, and provide tax credits to technology firms that create new jobs.
The plan "will reward businesses that create good jobs in New York state," said Dean G. Skelos, the Senate majority leader, who announced at the annual meeting of the Business Council of New York State being held in Buffalo. "It will help New York compete with other states that are doing the same thing."
My fellow New Yorkers, we need to look at this for what it is. The Republicans are saying that they "will reward businesses that create good jobs in New York state" by giving them tax breaks in return. But that's exactly what we are doing now. The problem is that there is no accountability. The idea behind the Empire Zone is a noble one: Reward companies who bring jobs to New York with tax breaks. Not only is there no accountability, but politicians (including some of our Republican state senators pushing this "plan") have received campaign contributions from individuals and businesses who come into New York, reap the Empire Zone rewards, and then leave the state. Talk about a conflict of interest.
I believe Democratic state senate candidate Dave Nachbar, who is running against Republican Jim Alesi in the 55th Senate District, put it best when he said during our interview with him the following:
The fact of the matter is that these were ideas. I don't think they were bad ideas in their inception to create pockets of activity and zones in which you can focus on and concentrate on. That's a good thing and having development agencies that likewise have focus and attention. But here's the missing ingredient and it's very straightforward: There is no accountability and accountability you achieve in various ways. One is that you demand a return on the invested dollar. That is very simple. How many jobs were created? Did the business actually get established? What was the need for the building of the business in the first place? There has been some recent analysis about some of the IDAs here in Monroe County in particular that IDA money was going to companies that would have expanded or developed here anyway. But of course a company is not going to be foolish and turn it down. And then you have companies that accepted Empire Zone or IDA funding who had within their business plans the creation of certain numbers of jobs and in fact have gone the other way. They have actually reduced force.
That best sums up these Empire Zones and IDAs. Can the Empire Zones be a good thing? Yes, but with accountability and oversight. The Republican state senators cannot deny that we have had companies take advantage of the Empire Zone program only to leave after their benefits were over. You can see all the companies that have benefited from Empire Zones here. Some of them are companies that were already here in New York but still have reaped the rewards of Empire Zones.
New York just started closing Empire Zone loopholes earlier this year. As the Post-Standard documented, 180 companies were notified that they risk not receiving Empire Zone benefits because they didn't create the jobs or meet the goals they said they would. Thus the problem with Empire Zones. This money has been handed over to these companies but they have not returned the favor.
So what do the Democrats need to do? The Democrats need to cut taxes. But they shouldn't cut taxes for corporations that can afford them. They need to implement a series of middle class tax cuts that target the hardworking citizens of New York. For example, an older friend of mine is retired from Delphi and has been working a seasonal job every year. He recently paid $3,800 in school taxes. He isn't the only one.
While the Republicans here in New York play to their friends in business and put corporations before the hardworking citizens of New York, the Democrats should be coming out with their own plan that cuts taxes for the majority of New Yorkers who need them. Property taxes need to be addressed here in New York. The Republicans voted on a cap and think a cap is a solution. A cap is not a solution. We need tax cuts, not tax caps.
The people of New York need someone to step up to the plate for them. The Republicans are standing up for business. Who are the Democrats going to stand up for? That's what millions of New Yorkers need to know. |
