New York Needs A Climate Where Small Businesses Can Flourish

Some of us are getting back out in our gardens right about now. We’re starting to feel the warmth of spring and things are beginning to grow. It takes a lot of care and the right climate for our plants to flourish. The same could be said about growing our small businesses.

New York recently celebrated Small Business Day and I know many of us can think of the small mom-and-pop shops that we love in our communities. Yet, New York State government continues to play a role that is contrary to the efforts of small-business entrepreneurs.

Recently, the Tax Foundation, a non-partisan tax policy institution, ranked New York 49th in its 2017 State Business Tax Climate Index. Albany in many ways has allowed life-sucking weeds to grow — making what was the Empire State’s once fertile soil of economic growth turn hard and sunbaked. State government has imposed numerous fees, fines, and other red-tape policies that have nearly choked out small businesses, and made our state one of the most taxed in the country. I am thankful for those who, despite little respite or relief, have been able to open their doors and kept at it for as long as they have.

Studies suggest that for every $100, roughly $68 is generated in local economic activity. Furthermore, small businesses are the biggest employers in the state. The multiplier effect is evident.

So, shouldn’t New York State do everything it can to clear the way for small business growth?

The state government should be weeding out excessive taxes and fees on small businesses, which stunt growth. Flashy programs with no meat on the bone like the governor has proposed can do nothing if the barriers to growth remain.

I am proud to be a member of the Assembly Committee on Economic Development, Job Creation, Commerce and Industry, where I advocate on behalf of Main Street small businesses. I am also a sponsor of the following several pieces of legislation that would clear the field for new growth.

• Small Business Full Employment Act (A.5423) — Reduces the tax burden on small businesses and would tackle the problem of overregulation in the state;

• Grow NY (A.6105) — Creates a pilot program that would provide grants to economic development agencies to assist second-stage small businesses;

• Eliminate Manufacturing Taxes (A.6758) — Removes the two most egregious and difficult taxes for manufacturers called the Corporate Franchise Tax, or what can be known as the job-killing tax, and the Personal Income Tax on manufacturers; and

• Learning for Work Program (A.4333) — Establishes a three-part program designed to create career-ready people upon high-school graduation. It would create a youth-apprenticeship program, an enhanced Regents professional degree and a youth-apprenticeship tax credit for the business.

New York State simply cannot say it’s for job and economic growth by throwing money at the problem. It must roll up its sleeves and dig in, uprooting every bad policy that gets in the way of small-business growth. I am willing to do it and I urge my colleagues to join me.

Marc W. Butler (R,C,I–Newport) is a New York State Assemblyman for the 118th District, which encompasses parts of Oneida, Herkimer, and St. Lawrence counties, as well as all of Hamilton and Fulton counties. Contact him at butlerm@assembly.state.ny.us