Recently, joint legislative budget hearings were held on taxes and economic development in Albany. I think the same-day scheduling of these hearings reflects how taxes and state affordability are tied to the ability of an economy to grow and develop. For some politicians in the state, including Governor Cuomo, the approach has been to invest […]
Recently, joint legislative budget hearings were held on taxes and economic development in Albany. I think the same-day scheduling of these hearings reflects how taxes and state affordability are tied to the ability of an economy to grow and develop.
For some politicians in the state, including Governor Cuomo, the approach has been to invest billions of dollars into the economy. It is exciting to see projects in my district that will benefit my constituents. However, New York can no longer afford to shy away from delivering the most important component of economic development — providing tax relief, reducing local costs by providing unfunded-mandate relief, and removing burdensome regulations.
Relief from onerous taxes, unfunded mandates, and regulations will have a profound impact not just on small businesses, but also on all taxpayers. New York is ranked by the Tax Foundation as having one of the worst business tax climates in the United States, noting that its individual income-tax rate is ranked second worst (in) 49th place. If that’s not bad enough, the Empire State also ranked 42nd on sales taxes and 47th on property taxes in the nation. These, of course, negatively affect small businesses and job creators, and also hurt families who reside in the state.
Economic development is highly dependent on a business-friendly environment, an area in which New York needs to improve. For our state to thrive, we need to reduce taxes on all New Yorkers and job creators.
From what I have seen in the governor’s budget proposal, I support $298 million worth of small-business tax relief. However, New York must increase its efforts to lower taxes overall. This can be achieved by providing meaningful relief from unfunded state mandates that actually cuts the burden on local governments and property taxpayers. It is not enough to cap the growth of certain mandates like Medicaid; there needs to be real relief. According to the New York State Association of Counties, just nine of the costliest mandates consume 99 percent of collected property taxes, costing taxpayers $12 billion annually.
Numerous studies show that lower taxes result in economic growth. When people are allowed to keep more of their own hard-earned money, they have more money left to purchase goods from local small businesses, which then are able to create more local jobs. Then we will see more people able to take risks and become entrepreneurs themselves.
New York, during this budgeting process, must take the steps necessary to ensure lasting economic growth and prosperity. That means providing tax relief to residents, small-business owners, and family farmers. This is what New York needs to do to unleash economic growth.
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